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BudgetTrustee Orientation

August 5, 2013AIM 2013 Brazil

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•How the Budget is put together

•Summary 2012 financial results

•Expectations of 2013 financial results

•Proposed 2014 Budget

•Future Budget forecasting

•Questions and Answers

Presentation Agenda

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How the Budget is put together

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What does CISV Int’l Budget look like?

Revenue Budget

(Expense Budget)

Surplus/ Deficit

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What does our revenue budget include?

• Membership Fees:

- National

- Chapter

• Activity Participation Fees

• Bank interest

• Insurance revenue

• Grants and Miscellaneous

• Penalties

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•Committees• IEC & IJB• Programs• Education & Training• Profile Raising• ODD• Other: ITC, IFC, IRMC, Task forces

• Board• Governing & IJB

• Areas/Committees• Educational Programs• Training & Quality

Assurance• Chapter Development• Events & Conferences• Resources &

Infrastructure

• Int’l Office• Int’l General

• Int’l Office• Int’l General

Previous Expense Budget 2014 Expense Budget

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Main expense budget categories•Board/Committee travel and accommodation expenses to meetings

•Regional Team Expenses:- Regional coordinators travel to regional

meetings/ Global conference- Other:

• Program 1st time visits• Local mosaic trainings• RTF hosting Trainers

•RTF Expenses- Trainers to deliver training- Receiving TTT Trainings- Training and Evaluation

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International Office Expense Budget

• Employment costs• Rent• Travel for managers to attend meetings• IT support and consumables• Office consumables• Depreciation on fixed assets• Printing & stationary• Postage …etc.

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•Insurance paid (Liability, Travel, Directors & officers)

•Professional fees (Auditors, lawyers & other consultants)

•Organizational IT & Web development•Publications & outreach materials•AIM general•LMO subscriptions•Bad debt provision•Host fees paid when invitations are cancelled•Grants to NAs for programme support

International General Expense Budget

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How do we develop our 2014 Budget?

Transition Team & Committees

• During 2013, IFC worked with Transition team on the 2014 Draft Budget based on the new structure

• Discussed within the EEC during Pre AIM

IFC

International Board

• Receives Committees and IO input• Ensures numbers are realistic and fit to Board’s guides• Presents Budget to the Board at the AIM• Explain how changes affect the overall financial picture

• Receives the Budget• Asks questions and gets answers• Makes changes if needed• Approves the BudgetApproves the Budget

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2014 Budget Approval Procedure

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Summary

CISV International

2012 Financial Results

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2012 Financial Overview:

• Fiscal Year Jan 1 – Dec 31 • Auditors: RHK Gateshead

• Fiscal Year 2012 reflected a surplus of 23,400 GBP vs. approved Budget deficit of 5,900 GBP

• Investment in CISV International Insurance Co - Total equity US$ 726,000 (GBP 450,000) - 100% owned by CISV International

• Reserve Balance as at Dec 31, 2012 is 595,000 GBP

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Changes in Revenue :

Insurance CollectedPenalty PaymentsIndividual MembershipBank Interest GrantsActivity Participation FeesMisc Income

16,80012,400

3001,800

-18,000-2,0003,900

Total 15,200

Update on 2012 Actual vs. Budget

Changes in Expenditure:

CommitteesProfessional FeesInternational OfficeInsurance PaidDebt ProvisionTransition TeamIT Support/DevelopmentGuar Host Fee/GrantsVat on Consultant Fees

34,400-7,9008,100

5005,000

-10,500-15,20010,900

-11,200

Total 14,100

Actual Surplus of 23,400 GBP

vs.

Approved Budget Deficit of 5,900 GBP

Net Change:29,300 GBP

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2012 Revenue Sources

* Other – Grants, Penalties, Interest, Membership

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2012 Expenditure Categories

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• 15 biggest NAs counts for 80% of International Programmes

• Impact of cancelling one programme:

– Village £ 7,700– Seminar £ 5,400 – Step Up £ 4,200– Interchange £ 1,900– IYM 8 days £ 1,400– IYM 15 days £ 2,400– IPP 16 days £ 900– IPP 21 days £ 1,100

Important Highlights

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Summary

CISV International

January - June 2013

Financial Status

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June 30 2013 GBP

Additional income from increase in the number of participants.

* Other includes travel insurance, penalty payments, grants.

Update on 2013 Budget

Actual Budget Variance

Revenue

Membership 21,200 21,850 (650)

Activities 867,311 780,711 86,600

Other * 120,778 116,288 4,490

Total 1,009,289 918,849 90,440

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June 30, 2013 GBP

Update on 2013 Budget

Actual Budget Variance

Expenses

Committees 100,460 217,080 116,620

Int’l Office 189,344 390,600 201,256

Int’l General 156,520 318,517 161,997

Total 446,324 926,197 479,873

Net Surplus/(Deficit) 562,965 (7,348) 570,313

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Draft 2014 Budget

and

Forecast Budgets 2015-2018

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Actual Budget Forecast

Revenue & Expense from 2007-2018

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Year Host Portion

IO Portion Total

2012 Base Fee 6.00 £ 5.00 £ 11.00 £

2013 3% increase 6.18 £ 5.15 £ 11.33 £

2014 2% increase 6.30 £ 5.26 £ 11.56 £

2015 3% increase 6.50 £ 5.41 £ 11.91 £

2016 3% increase 6.70 £ 5.57 £ 12.27 £

2017 3% increase 6.90 £ 5.74 £ 12.64 £

2018 3% increase 7.10 £ 5.92 £ 13.02 £

Example: Village / Step Up / Youth / Seminar – Participant Fee Per Day

Annual % Increase in Fees based on Inflation Rate

For

ecas

ted

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