Budget Trustee Orientation August 5, 2013 AIM 2013 Brazil

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

How the Budget is put together

What does CISV Int’l Budget look like? Revenue Budget (Expense Budget) Surplus/ Deficit

What does our revenue budget include? Membership Fees: - National - Chapter Activity Participation Fees Bank interest Insurance revenue Grants and Miscellaneous Penalties

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

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 1 st time visits Local mosaic trainings RTF hosting Trainers RTF Expenses -Trainers to deliver training -Receiving TTT Trainings -Training and Evaluation

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.

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

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 Budget Approves the Budget

Budget 1 st Version August 5 th IFC presents Budget to the Board Adjustment to Budget August 6 th - 10 th Approval of Motions & Committee requests Budget 2014 Final version August 10 th Budget Approval 2014 Budget Approval Procedure

Summary CISV International 2012 Financial Results

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

Changes in Revenue : Insurance Collected Penalty Payments Individual Membership Bank Interest Grants Activity Participation Fees Misc Income 16,800 12, , ,000 -2,000 3,900 Total15,200 Update on 2012 Actual vs. Budget Changes in Expenditure: Committees Professional Fees International Office Insurance Paid Debt Provision Transition Team IT Support/Development Guar Host Fee/Grants Vat on Consultant Fees 34,400 -7,900 8, , , ,200 10, ,200 Total14,100 Actual Surplus of 23,400 GBP vs. Approved Budget Deficit of 5,900 GBP Net Change: 29,300 GBP

Revenue Sources * Other – Grants, Penalties, Interest, Membership

Expenditure Categories

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

Summary CISV International January - June 2013 Financial Status

June GBP Additional income from increase in the number of participants. * Other includes travel insurance, penalty payments, grants. Update on 2013 Budget ActualBudgetVariance Revenue Membership21,20021,850(650) Activities867,311780,71186,600 Other *120,778116,2884,490 Total1,009,289918,84990,440

June 30, 2013 GBP Update on 2013 Budget ActualBudgetVariance Expenses Committees100,460217,080116,620 Int’l Office189,344390,600201,256 Int’l General156,520318,517161,997 Total446,324926,197479,873 Net Surplus/(Deficit)562,965(7,348)570,313

Draft 2014 Budget and Forecast Budgets

Actua l Budget Forecast Revenue & Expense from

YearHost Portion IO Portion Total 2012Base Fee6.00 £5.00 £11.00 £ 20133% increase6.18 £5.15 £11.33 £ 20142% increase6.30 £5.26 £11.56 £ 20153% increase6.50 £5.41 £11.91 £ 20163% increase6.70 £5.57 £12.27 £ 20173% increase6.90 £5.74 £12.64 £ 20183% increase7.10 £5.92 £13.02 £ Example: Village / Step Up / Youth / Seminar – Participant Fee Per Day Annual % Increase in Fees based on Inflation Rate Forecasted