NCA 2005 Annual Convention Legislative ...

http://www.natcom.org/NCA 2005 Annual Convention Legislative AssemblyNCA 2005 Annual Convention Legislative Assembly

Finance Board ReportFinance Board Report

Tim HynesTim Hynes

Finance Board DirectorFinance Board Director

National Communication AssociationNational Communication Association


Financial ReportsFinancial Reports

End-of-year reportsEnd-of-year reports– FY04-05 Financial PositionFY04-05 Financial Position– FY04-05 Financial ActivitiesFY04-05 Financial Activities– Report of Independent AuditorReport of Independent Auditor

FY05-06, FY06-07, FY07-08 Budgets FY05-06, FY06-07, FY07-08 Budgets

Strategies for the futureStrategies for the future


Financial Position SummaryFinancial Position Summary

Represents assets and liabilities of the Represents assets and liabilities of the AssociationAssociation

OverviewOverview– Shifting from Cash & Cash Equivalent to Shifting from Cash & Cash Equivalent to

InvestmentInvestment– Net Assets IncreasedNet Assets Increased– Accrual BasisAccrual Basis– Fund Allocation from Undesignated to Fund Allocation from Undesignated to

Board Designated FundBoard Designated Fund


Investment Policy SummaryInvestment Policy SummaryObjectives Objectives

Short Term InvestmentShort Term Investment– Reserve the principleReserve the principle– Maintain liquidityMaintain liquidity– Optimize the investment return within the constraints of the Optimize the investment return within the constraints of the

aboveabove– Maximize FDIC and SPIC insurance levelMaximize FDIC and SPIC insurance level

Long Term InvestmentLong Term Investment- Pursue a long-term goal designed to maximize the returns Pursue a long-term goal designed to maximize the returns

without exposure to undue riskwithout exposure to undue risk

Investment Distributions GuidelinesInvestment Distributions Guidelines– Conservative or Moderately Conservative Investment StrategyConservative or Moderately Conservative Investment Strategy– Divided among several financial institutionsDivided among several financial institutions– Divided into funds based on restriction and purpose of the fundsDivided into funds based on restriction and purpose of the funds– Annual Review Distribution PercentagesAnnual Review Distribution Percentages


Financial Position - AssetsFinancial Position - Assets

(1,300)7,532

015,063

1,3007,531

Assets - Other–Life Member A/R–Convention Deposits

542,7984,144,6353,601,837Total Assets

6,232

(123,432)

(13,026)(28,657)(37,914)(43,835)

0

659,998

(370,448)1,001,540

(5,398)1,555

32,749

Variance

1,994,5302,117,962Subtotal - Fixed

65,88633,176

148,0511,512,310

235,107

78,91261,833

185,9651,556,145

235,107

Assets – Fixed–Furniture and Fixtures–Office Equipment–Computers and Software–Building and Improvements–Land

15,0638,831Subtotal - Other

Subtotal - Current Assets

Assets - Current–Cash/Cash Equivalents–Investments–Accounts Receivable–Inventory for Resale–Prepaid Expenses

1,475,044

885,464539,823

29,86817,300

2,589

FY03-04

2,135,042

515,0161,541,363

24,47018,85535,338

FY04-05


Financial Position – LiabilitiesFinancial Position – Liabilities

506,422

29,50790,06452,336

327,1757,340

FY04-05

20,093

(6,594)(1,780)

4,18244,643

(20,358)

Variance

486,329Total Liabilities

Liabilities–Accounts payable –Accrued expenses–Accrued payroll & Taxes–Deferred revenue–Capital Lease

36,10191,84448,154

282,53227,698

FY03-04


Investment SummaryInvestment Summary

Mutual Funds45%

Certificate of Deposit

23%

US Bonds & Mortgages

32%

Short and Long-Term Investments:

$1,541,363


Financial Position – Net AssetsFinancial Position – Net Assets

37,0251,805

944,250227,275

907,225225,470

Restricted net assets–Temporarily restricted–Permanently restricted

3,638,213

313,0601,512,315

641,313

FY04-05

522,705

90,636(43,827)437,066

Variance

3,115,508Total Net Assets

Unrestricted net assets–Designated by the Board –General Operating Fund –Contingency fund

222,4241,556,142

204,247

FY03-04


Few Key DifferencesFew Key Differences

Liability13%

Asset87%

Liability12%

Asset88%

FY03-04:

Liability - $486,000

Asset - $3,116,000

FY04-05

Liability - $506,000

Asset - $3,638,000


Financial Activities Financial Activities SummarySummary

Partnership with Taylor & FrancisPartnership with Taylor & FrancisPartnership with EBSCOPartnership with EBSCOAll-time high membership All-time high membership Record high convention attendance Record high convention attendance Continued growth of Student OrganizationsContinued growth of Student OrganizationsDepreciationDepreciation


Activities - Four Year SummaryActivities - Four Year Summary

0

500

1,000

1,500

2,000

2,500

3,000

Income 2,224 2,510 2,520 2,774

Expenses 2,293 2,399 2,118 2,290

FY01-02 FY02-03 FY03-04 FY04-05


Activities Summary – 04/05Activities Summary – 04/05

0

200

400

600

800

Income 730 245 247 692 112 668

Expense 336 102 81 277 148 529

Mem Spectra Stu Orgs Subs Pub Convention

Income: 2,773,928

Expenses: 2,290,053


Activities Summary – 04/05Activities Summary – 04/05

0

100

200

300

400

500

600

Income 3 25 53

Expense 233 30 554

Edu & Res CIDD Adm

Income: 2,784,824

Expenses: 2,300,950


Journal Subscriptions - Four Year Journal Subscriptions - Four Year SummarySummary

0

200,000

400,000

600,000

800,000

Income 652,599 652,637 657,685 691,571

Expenses 317,605 312,645 274,589 276,851

FY01-02 FY02-03 FY03-04 FY04-05


Breakdown of IncomeBreakdown of Income

Spectra

Student Org

Publications

Education & Research

CIDD

Convention

Membership

Subscriptions

Other


Breakdown of ExpensesBreakdown of Expenses

Education & Research

Publication

Student OrgSpectra

Convention

Subscriptions

MembershipCIDD

Administration


Program ExpenseProgram Expense

Surplus

Governance

CIDD

Administration

Membership

Subscriptions

Convention

SpectraStudent Org

PublicationEducation & Research


Approval of ReportsApproval of Reports

Move to accept the FY04/05 financial reports Move to accept the FY04/05 financial reports and receive the draft report of Independent and receive the draft report of Independent Auditor as presentedAuditor as presented


Budget AssumptionsBudget Assumptions

Includes recommendations of the Boards Includes recommendations of the Boards and the Executive Committee to dateand the Executive Committee to date

No other significant changes in No other significant changes in operationsoperations

Three year rolling budget, modified each Three year rolling budget, modified each yearyear


Budget Summary - Budget Summary - IncomeIncome

0

200,000

400,000

600,000

800,000

1,000,000

FY05/06 736,901 235,455 216,250 700,641 702,814 111,720 19,800

FY06/07 744,073 235,455 224,700 705,641 744,236 111,720 19,800

FY07/08 751,318 235,455 233,150 710,641 822,733 111,720 19,800

Mem Spectra Stu Sub Conv Pubs Other


Budget Summary – ExpensesBudget Summary – Expenses

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

FY05/06 380,933 106,800 66,955 284,859 612,314 168,365 280,314 700,409

FY06/07 392,985 106,800 67,676 286,313 629,779 172,704 289,032 707,201

FY07/08 407,965 106,800 70,873 288,119 646,678 178,097 299,867 725,804

Mem Spectra Stu Sub Conv Pubs Other Adm


Budget Summary- AdminBudget Summary- Admin

0

500,000

1,000,000

1,500,000

FY05/06 986,271 252,919 91,026 90,060 171,085 267,913

FY06/07 1,044,955 264,259 89,351 68,862 162,911 273,808

FY07/08 1,107,160 282,678 90,717 47,185 162,911 279,425

Sal Ben Bldg Equip Gov Other


Financial ProjectionFinancial Projection

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

Income 1,813 2,085 2,001 2,093 2,626 2,224 2,510 2,520 2,774 2,724 2,786 2,885

Expense 1,717 1,937 1,938 2,068 2,452 2,293 2,399 2,118 2,290 2,601 2,652 2,724

FY96-97 FY97-98 FY98-99 FY99-00 FY00-01 FY01-02 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08


StrategiesStrategies

Build contingency fundBuild contingency fund

Protect revenue streamsProtect revenue streams

Reduce costsReduce costs– More efficient processingMore efficient processing– Flexible staffing modelsFlexible staffing models– OutsourcingOutsourcing– Programs/Projects evaluationPrograms/Projects evaluation

Identify new income sourcesIdentify new income sources


Strategies in MotionStrategies in Motion

• E-commerce (July 2002)E-commerce (July 2002)

• On-line program submissions (2003)On-line program submissions (2003)

• Manuscript tracking system for journals (2003)Manuscript tracking system for journals (2003)

• Partnership with T&F for journals (2003)Partnership with T&F for journals (2003)

• Partnership with EBSCO for database (2003)Partnership with EBSCO for database (2003)

• New Web Design (2004)New Web Design (2004)

• Partnership with Conference Direct (2005)Partnership with Conference Direct (2005)


Commercial PartnershipsCommercial Partnerships

• Guarantee of subscription revenueGuarantee of subscription revenue

• Increased member servicesIncreased member services

• Increased marketingIncreased marketing

• New revenue streams from increased New revenue streams from increased non-member access to journalsnon-member access to journals


Potential Additional Income Potential Additional Income SourcesSources

GrantsGrants

Capital CampaignCapital Campaign

Carriage House RentalCarriage House Rental

JobsOnlineJobsOnline


Approval of BudgetApproval of Budget

Move to approve the FY05/06, 06/07, 07/08 Move to approve the FY05/06, 06/07, 07/08 budgets as presentedbudgets as presented

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