Fiscal Status of NDSA CHRIS MCEWEN PRESENTED TO THE NDSA ASSEMBLY IN APRIL OF 2015

Overview ◦NDSA Account Balance for End of FY14-15 ◦Projections of Balance for Future Years ◦The Need for a Minimum Balance ◦Options Available to the NDSA Assembly

Current Balance ◦The current balance at the time of this report is roughly $19,000 with $14,969 in fees collected for the year. ◦Some expenditures related to the April NDSA meeting and the April SBHE meeting are anticipated still as well. ◦Another $11,000 to $13,000 in fee revenue is expected. ◦Projected end of FY balance range: $26,000 to $35,000.

Notes on Current Balance ◦Lower than expected balance of $45,000. ◦Operating on past-year’s data. Did not have full financial information available upon writing the budget in March. ◦Had to compile budget on short notice. ◦Most fee revenue gets deposited in November and April/May as we get most checks after it’s past the deadline for students to reclaim part of fees from dropping coursework.

Projections for Current Balance ◦Current budget draft has $8,000 in deficit spending. Potential exists to raise this to $10,000 to accommodate proposals necessary for the growth and development of NDSA. ◦Still a major cutback from previous year’s expenses. ◦We should have around $20,000 in the account at the end of FY

The Need for a Minimum Balance ◦As noted, most fee collections happen in November and April/May. ◦We spend large portions of our budget before we get the deposit needed. ◦We spend around $9K at once when we distribute stipends. ◦We average $2K in expenses per NDSA meeting. ◦We need, at minimum, $13-15K to facilitate this until we get the deposit or we need to change our spending practices.

Options Available to the NDSA Assembly ◦Option 1:Raise the fee for FY by one cent per credit. ◦This should generate $8-9K in revenue, which would wipe out the deficit. ◦This will allow a healthy reserve to be maintained for unexpected needs.

Options Available to the NDSA Assembly Option 2:Wait until FY16-17 to raise the NDSA fee. ◦This is feasible, but this will leave less margin of error and will leave less room to grow as well. ◦Some risk exists of going below minimum fee.

Options Available to the NDSA Assembly Option 3: Cut Spending ◦The conundrum: NDSA’s proposed budget is already pretty barebones ◦The only avenues one would have is to reduce stipends, reduce host school reimbursements, and/or reduce travel of officers to directly represent NDSA at key functions. ◦It may be possible to synergize efforts and create efficiencies, but that can’t be guaranteed.

Options Available to the NDSA Assembly Option 3: The Combination Platter ◦Combining fee increases with efficiencies. ◦The proposed budget saves nearly $7,000 from the previous fiscal year’s situation. ◦A small fee increase ($0.01 per credit) would be enough to turn the deficit into a modest surplus ($1-2K above water) if projections are correct.

Options Available to the NDSA Assembly Option 3: Do Nothing or Delay Action ◦Always an option. ◦But it’s a bad one that could jeopardize sound operations. ◦Highly advisable to arrive at least at a functional consensus by the end of the April meeting.

Recommendation of Author ◦The author prefers Option 3: The Combination Platter with a fee increase happening, at minimum, by Fall The budgetary component will be achieved if the proposed budget is adopted. ◦Fee increase for Fall 2016 would leave us in a better position for legislative session in two years. We will need to spend an extra $3-6K to send representation to Bismarck.

Bonus Recommendations ◦Author recommends an a committee to actively investigate ways to achieve financial efficiencies while also adequately meeting the Constitutional charge of NDSA to represent the interests of students. ◦Author recommends either a minimum balance of $18,000 in our accounts and/or a change in stipend distribution.

THANK YOU FOR TOLERATING THIS PRESENTATION. YOU’RE ALL AWESOME.