Board Of Directors Review of Draft Budget For 2013/14 April 2, 2013 4:00 – 6:00 pm.

Board Of Directors Review of Draft Budget

For 2013/14April 2, 2013

4:00 – 6:00 pm

DRAFT BUDGET FOR REVIEW 2

Agenda• Introduction

• Review of IOG’s Draft Budget 2013/14

– Business Line Overview

– Revenue Profile

– Overhead

– Headcount

– Supporting Schedules

• Comparison of Y/Y Quarterly Revenues

• Qtrly Statement of Financial Position

• Qtrly Statement of Operations

• Qtrly Statement of Changes in Financial Position

Introduction

• Two step process:

– Step 1: Coordination and approval of 2013/14 budget (baseline)

– Step 2: May 7 board retreat

• Broader discussion of strategic direction and plan

• Budget may be adjusted to reflect decisions


Business Line Overview

Public Governance

• Overall story – ongoing advisory work with slight shift to a higher ratio of funded research work.

• Key Assumptions – steady demand for advisory in Ottawa, slight increase in OPS for advisory work.

• Investments – marketing time on the part of the VP and Executive Director of Public Governance Exchange (PGEx) to shift focus to proactive research projects and higher membership levels.

• No new resources required.

5

Not for Profit (NFP) Governance

• Overall story – consolidating growth of last 2 years.

• Key Assumptions – continued, steady demand for traditional services, residual work from new Canada and Ontario NFP Acts, some lift from Board/Stakeholder research project.

• Investments – completion of analysis on board/stakeholder research project and accompanying publication.

• No new resources.

6

Indigenous Governance

• Overall story – steady increase in advisory work as business line has been rebuilt; projected numbers are in keeping with historical #s.

• Key Assumptions – ongoing work from a couple of key clients, ability to build off of very successful Section 35 events, launch of research agenda (multiple partners).

• Revenue being generated by BC office.

• Investments – require 1 dedicated mid-level experienced researcher, 1 dedicated mid-level secondment.

7

Modernizing

• Overall story – significant shift in mix of work, with greater in-house delivery and research intensity.

• Key Assumptions – ongoing work at City of Ottawa, select strategic advisory work driven by GoC and OPS transformations, launch of Public Governance Exchange.business transformation (PGEx.bt)

• Investments – new Senior Associate, possible hire at the Director level.

8

Learning Lab – generic courses• Overall story - after a slow year, numbers in 3rd and 4th

quarters grew, although not back to 2011 levels

• Key assumptions – numbers will not grow rapidly in new fiscal; ongoing steady demand for learning fundamentals offered by these courses; stick to core courses; use of internal, senior level facilitators adds value

• Investment - work with new associate to develop & implement marketing strategy; VP Policy & Strategy to review and revise Policy 1 & 2 teach and market products; use senior internal people for other courses with minimal use of associates

• No new resources.

9

Learning Lab – Boot Camps• Overall story – Functional community (HR,

communications, IT, policy, science-policy, comptrollership) leadership boot camps appear to be responding to market need

• Key assumptions – communities will support and help market products; senior level facilitators add value; there is a market for customized boot camps in departments

• Investment – develop community support; market offerings; use senior level facilitators

• No new resources

10

Learning Lab – ELP• Overall story – ELP is now in its fourth cohort, with two

more planned: May (science-policy) and September

• Key assumptions – continuing room for growth; value rests on high standard of content; senior level facilitators

• Investment – high quality research and lineup, including off-site Nunavut visit; 2 senior level facilitators in classroom; marketing May and September


11

Learning Lab - Events

• Overall story – there is an opportunity at the federal level to market embedded and customized events to departments and functional communities

• Key assumptions – contracting and budgeting restrictions that open this opportunity will remain in place; focused effort on this market required


12

Learning Lab - Toronto

• Overall story – significant investment to date, modest expansion of OPS courses planned;

• ELP program for provincial, federal and municipal sectors in GTA being explored

• Key assumptions – marketing, planning and delivery can succeed using existing OPS networks

• Investment – a larger number of former OPS Associates supported by Ottawa team

13

Historical Annual Revenues

14DRAFT BUDGET FOR REVIEW

F = ForecastedB = Budget

Revenue Profile

CDN $000’sFY 13

(est.)

FY14

Budget

Y/Y

%

Learning Centre Total $1,167 $1,626 +39%

Generic Courses1 $404 $679 +68%

Executive Learning $556 $782 +41%

Custom (Includes Events) $207 $165 -25%

Advisory & Research Total $1,967 $2,085 +6%

Aboriginal Governance $458 $678 +48%

Public Sector $584 $671 +15%

Modernizing Government $688 $479 -44%

Not for Profit Sector $237 $257 +8%

DRAFT BUDGET FOR REVIEW

1 Includes Boot and Day courses

15

Business Line Overview

CDN $000’s

LL2

Budget

FY 14

A&R3

Budget

FY 14

Total

Budget

FY 14

FY13

Forecast

(est.)

Variance

%

Gross Revenue $1,626 $2,085 $3,711 $3,134 +18%

Direct Costs (includes subs) $243 $438 $681 $652 +5%

Direct Labour $643 $944 $1,587 $1,380 +15%

Gross Profit $740 $703 $1,443 $1,102 +31%

Gross Profit % 46% 34% 39% 35% +11%

Overhead Allocation1 $443 $658 $1,101 $1,134 -

Excess (Deficiency) of Revenue over Expenses $297 $45 $342 ($32) -


1 Overhead Allocated based on direct Labour costs2 Learning Lab Business Line3 Advisory & Research Business Line

16

Operating Expenses

17

CDN $000’sFY14

Budget

FY 13

Forecast

(est.)

Y/Y

%

Salaries & Benefits $2,036 $1,889 +8%

Outreach $42 $42 -

Occupancy $388 $396 -2%

Audit/Legal $14 $9 +56%

Office $172 $142 +21%

Amortization $37 $37 -

Total $2,689 $2,515 +7%


Headcount


Q4 ‘13 Q1 ’14 Q2 ‘14 Q3 ‘14 Q4 ‘14

Professional Staff3 12 10 10 10 10

Sr. Research Officer 3 3 3 3 3

Research Officer 5 5 5 5 5

Administration2 5 5 5 5 5

Total FTE1 25 23 23 23 23

Sr. Associates4 5 6 6 6 6

Associates4 5 5 5 5 5

1 Does not include Summer Interns or Associates2 Includes 2 PTE’s

3 Includes CEO and VP’s4 Consultants

18

Cash Position

19

1H ‘14 Cash Position impacted by:•Cohort 4 and forecasted Cohort 5 prepayment•Q4 ‘13 forecasted billings•Vendor repayment plans

Risks•Forecast Accuracy•Timeliness of Billings•Working Capital assumptions


Supporting Schedules

20

Financial Assumptions• Working Capital Assumptions

• Project Billings – net 60 days

• Learning Centre – 30% prepaid/70% up to 90 days

• Accounts Payable – 45 – 60 days of expenses

• Capital Additions $60k

• Labour Costs

– COLA 3% (52K)

– Bonus Accrual $80k (plan forthcoming)


Financial Assumptions (cont’d)

• Facilities located in:

– Ottawa

– Toronto

– Vancouver

• No accounting for Work in Process


Quarterly Revenue Comparison


Note: Q4 of FY 13 is forecast

Balance Sheet


Statement of Changes in Financial Position


Statement of Operations


Board Of Directors Review of Draft Budget For 2013/14 April 2, 2013 4:00 – 6:00 pm.

Documents

Transcript of Board Of Directors Review of Draft Budget For 2013/14 April 2, 2013 4:00 – 6:00 pm.