Budget Analysis and Review Committee (BARC)

2016-2017 EBD #14.2

2016-2017 BARC #20.2

TO:ALA Executive Board

Budget Analysis and Review Committee (BARC)

DATE:October 19, 2016

ACTION REQUESTED:

Approval of the Final FY 2017 Total ALA Budget

ACTION REQUESTED BY:

Keith Michael Fiels, Executive Director

Mark Leon, Chief Financial Officer

Brad Geene, Director Planning & Budgeting

OVERVIEW

At the Orlando Annual Conference, on Monday, June 27, 2016, the Executive Board and Council received and approved theFY 2017Total ALA Budget. This budget reflected changes incorporated since the Spring BARC meeting.

This document, and its associated set of schedules, summarizes the changes that have occurredsince thosemeetings.Material adjustments, defined as those resulting in a $5,000 favorable or unfavorable change to a Unit’s net revenue or expense, are summarized in this presentation. The magnitude of each change and its reason is outlined below, by fund.

The revised FY 2017 Budgetary Ceiling amounts then follow the fund by fund detail.

Adjustments to the FY17 ALA TotalBudget (by Fund and Unit)

General Fund – Publishing Units’ Net Revenue (Expense)

Publishing Unit / AC Orlando / Fall BARC / change ($)
ALA EDITIONS\ ALA eLearning / (53,499) / (310,897) / (257,398)
BOOKLIST / 1,303,355 / 1,108,250 / (195,105)
ALA GRAPHICS / 100,536 / (13,085) / (113,621)
ALA Digital Reference / 153,489 / 100,696 / (52,793)

Publications Units’ revisions to their FY 2017 budgets incorporate additional insights gained from the now complete FY 2016 Actual results. Detailed analysis of prior year results is provided in BARC documents #5.3, FY16 Year-End Analysis, and #23.1, Publishing Report. The revised FY 2017 budgets present a more conservative plan for fiscal year 2017, both for expected revenue and associated expense.

General Fund – Other Units’ Net Revenue (Expense)

General Fund Unit / AC Orlando / Fall BARC / change ($)
ANNUAL CONFERENCE / 954,160 / 781,717 / (172,443)
HUMAN RESOURCES / (693,338) / (777,971) / (84,633)
MIDWINTER CONFERENCE / 25,796 / (51,680) / (77,476)
INFO & TELECOMM. SYS / (2,961,306) / (2,975,335) / (14,029)
EXECUTIVE BOARD / (309,969) / (318,577) / (8,608)
EXECUTIVE OFFICE / (1,014,299) / (1,020,860) / (6,561)
OGR / (691,932) / (686,766) / 5,166
DEVELOPMENT OFFICE / (359,909) / (349,909) / 10,000
OFF/LIB PERS RESOURC / (401,870) / (390,498) / 11,373
WASHINGTON OFFICE / (918,170) / (905,955) / 12,215
OFFICE OF INFORMATION / (556,670) / (543,116) / 13,554
MEMBER/PROGRAM & SER / (322,589) / (301,206) / 21,383
MEMBERSHIP SERVICES / (754,416) / (726,336) / 28,080
ACCOUNTING / (859,318) / (812,222) / 47,096
DISTRIBUTION CENTER / (161,282) / (113,620) / 47,662
GENERAL ADMINISTRATION / 5,689,506 / 5,790,846 / 101,340
GEN'L FUND ALLOCATIO / 6,144,671 / 6,542,625 / 397,954

Conference adjustments reflect a correction of the overhead amounts based on the rate for FY17 of 26.4%.

Human Resources’ budget now reflects the expected expenses for the forthcoming recruitment of the ALA Executive Director between now and July 2017.

The other General Fund material changes noted in the above table are a result of the net effect of all Department Heads revisiting their original departmental budgets and reducing expenses in light of the Publishing changes to FY17.

General Administration & Allocation changes are based upon balancing of inter-unit transfers;latest benefits cost calculations, and additional grant overhead contributions. Additionally, Health Insurance expense was adjusted to incorporate actual 2016 invoice amounts.

Although not material for any individual Unit, small changes to some Unit’s FY17 budgets were necessary to capture the additional expense driven by new Federal overtime rules that will be in effect starting November 2016 through August 2017 of this fiscal year. The cumulative salary and associated benefits expense totals approximately $50,000 across ALA with the majority within the General Fund. See page 7 for the General Fund summary schedule.

Division Fund Net Revenue (Expense)

ALA Division / AC Orlando / Fall BARC / change ($)
RUSA / (123,223) / (86,308) / 36,915
PLA / (841,513) / (814,693) / 26,820
ALCTS / (37,906) / (43,606) / (5,700)
ASCLA / 10,034 / (9,548) / (19,582)

The above Divisional changes are based on recommendations from their respective boards during the Annual Conference and are reflected here in this Final Budget.Their revised Statements of Revenue and Expense, by Division, are presented on page 10in this document.

Round Tables

There were no material changes to the group of Roundtable budgets presented at AC Orlando. The total revenue, expense, and net position for the group of 20 roundtables are summarized below. Each of the individual Roundtable budgets is presented on page 12 of this presentation.

Total Roundtables / AC Orlando / Fall BARC / change ($)
Total Revenues / 441,093 / 439,913 / (1,179)
Total Expenses / 415,993 / 415,912 / (81)
Net Revenue / 25,100 / 24,002 / (1,099)

Grants and Awards

Grants budgeted since Annual Conference / FY17 Budget
Dollar General-American Dream #5 / 314,797
PUBLIC LIBRARY ASSOC-Gates-PLA African Leadership Training / 253,802
DIVERSITY-Dollar General-American Dream 2014 Supplement / 235,066
DEVELOPMENT OFFICE-LIBRARY CHAMPIONS FUND / 146,000
PUBLIC PROGRAMS-IMLS-Lib Transform Communities II / 96,893
PUBLIC PROGRAMS-Ford Foundation-GSC Workshop / 50,000
PUBLIC PROGRAMS-NEA Author Tour-Great Stories / 19,998

The revised Grant Fund budget is presented on page 14.

Total Capital Budget Request

The FY 2017 Capital Budget Request, General Fund only, is unchanged from Annual Conference at $1,928,894 resulting in $184,538 in depreciation expense to the General Fund operating budget. Separately the Divisions have requested $159,000 resulting in $4,900 in FY17 depreciation.

These totals do not include the $100,000 capital contingency amount for unanticipated needs. The Capital Budget Request includes investment in on-line software development, building maintenance, continuing investment in information systems technology, and interior renovations.

Revised FY 2017 Budgetary Ceiling

These adjustments are now incorporated into a revised FY 2017 Total ALA Budgetary Ceiling.

FY 2017 Budgetary Ceiling: Annual Conference versus Fall BARC

(Table of Changes)

AC Orlando / Fall BARC / ($) change
General Fund / $30,120,362 / $29,587,223 / ($533,139)
Division Fund / 28,349,272 / 28,702,106 / 352,834
Round Tables / 2,090,736 / 2,210,882 / 120,146
Grants & Awards / 4,475,827 / 5,393,710 / 917,883
Long-Term Investment / 367,018 / 847,358 / 480,340
Total ALA
Budgetary Ceiling = / $65,403,215 / $66,741,279 / $1,338,064

These changes represent a 2% increase from Annual Conference.

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