ala finance best practices association for library service to children budget process 2011 midwinter...
TRANSCRIPT
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ALA FINANCE BEST PRACTICESASSOCIATION FOR LIBRARY SERVICE TO CHILDREN BUDGET PROCESS
2011 Midwinter Meeting Friday, January 7, 2011
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ALSC’s Finances Background Simple structure- no chapters or sections Focus on strategic budget and finance
operations Added Fiscal Officer Budget Committee includes Fiscal Officer, Vice-
President/President, Past-President Funding decisions based on strategic plan and
continuing operations 11Endowments and Long-Term Investments
offset operations and provide opportunities to expand services Awards, scholarships, continuing education, leadership
development
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Budget Preparation
Continuous cycle September - November
Staff review budget notes and evaluate projects
Create division budget assumptions Use past trend data Look at variances and adjust Factor in new products or services
December Prepare budget summary and narrative for
Budget Committee
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Detailed Explanations
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Budget Summary
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Budget Narrative
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Budget Preparation cont’d
Midwinter Meeting Budget Committee meets twice
Review strategic plan, operations, initiatives Review endowment performance and activity Increase funding if necessary Review requests for funding
Discuss ALA finances Prepare and present preliminary proposed
budget to the ALSC Board
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Endowments
Operating Fund Reserves (Net Asset Balance) Four or more months is acceptable “Remarkable” organizations carry an average
reserve of 90% of annual expenses. Endowment/LTI Transfers
$300,000 earmarked for a new Board Initiatives LTI
Increase fund balances of existing LTIs through transfers Cover new expenses
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Budget Preparation cont’d
Midwinter Meeting Budget Committee meets twice
Review strategic plan, operations, initiatives Review endowment performance and activity
Increase funding if necessary Review requests for funding
Discuss ALA finances Prepare and present preliminary proposed
budget to the ALSC Board
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Budget Preparation cont’d
Board will review and approve preliminary budget for presentation to BARC in spring.
February-June Executive Director incorporates necessary
adjustments as assumptions change or Board action requires
Executive Director presents budget to BARC Executive Director prepares final preliminary
budget Budget Committee reviews and makes
recommendations to Board Board approves final budget
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Budget Preparation cont’d
July-August Executive Director prepares monthly
allocations Professional membership renewals Non-serial publication production schedule Conference and event expenses
September Start of fiscal year
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Monitoring
Staff monitor and track their project areas Tracking spreadsheets developed from
budget notes Staff process accounts receivable and
payable Staff provided with ALA chart of accounts
and ALSC project numbers
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Chart of Accounts
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ALSC’s Project Numbers
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Monitoring cont’d
Staff monitor and track their project areas Tracking spreadsheets Staff process accounts receivable and payable Staff provided with ALA chart of accounts and
ALSC project numbers Monthly reconciliation by Executive Director
Review FRX reports looking at variances Look for line items that were not budgeted Correct any miscodes or errors on monthly basis Provide monthly summary report with analysis
to ALA and Budget Chair
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Mid-Year Projections
February/March Begin to formulate mid-year projections
Analyze year-to-date income and expenses against allocations
Look at overall operating fund line items Drill down to project level line items
Submit projections to ALA and Budget Committee
Continue to monitor and analyze in monthly reports
This helps both the Division and ALA project where they will be at the end of the fiscal year. Allowing for expense reductions, if necessary.