1. Budget Analysis And Review Committee (BARC)
ALA CD #33.0
Midwinter Meeting
Budget Analysis And Review Committee (BARC)
report to
ALA Council, Executive Board, Membership
and
The Planning and Budget Assembly
Midwinter Meeting – Denver, CO
Saturday - February 10, 2018
Sunday - February 11, 2018
Rhea Lawson – BARC Chair

2. BARC Report Topics Budget Update Other Activities
Fiscal Year 2018 final Budget
BARC Discussed and Approved budgetary Ceiling Adjustments
Fiscal Year 2018 Four month Results
Three Months Ending
Other Activities
Discussion on Council Resolution submission process
ALA Financial Learning Series reminder

3. Budget Orientation ALA’s Current Fiscal Year 2018
Started Sept 1, 2017 – Ends August 31, 2018
Midwinter Meeting Discussions on ALA finances cover 3 different fiscal years
FY 2017 – year end closing
FY 2018 – four month financial report (September - December)
FY 2019 – planning & budget assumptions

4. Fiscal Year 20xx Total ALA Budgetary Ceiling
Net Assets
(Unexpended balance remaining from fiscal year closing) +
Revenue
(Anticipated in upcoming fiscal year) =
Budgetary Ceiling

5. FY2018 Total Budgetary Ceilings
AC Chicago
Fall BARC
($) Change
(%) Change
General Fund
$ 29,792,027
$ ,852,513
$ (939,514)
(3.2%)
Division Fund
$ 28,875,232
$ ,425,594
$ ,362
1.9%
Round Tables
$ 2,206,967
$ ,209,469
$ ,502
0.1%
Grants & Awards
$ 4,551,555
$ ,055,953
$ ,504,398
33.1%
Long-Term Investment
$ 1,249,209
$ ,249,209 $
0.0%
Total ALA
Budgetary Ceiling =
$ 66,674,990
$ ,792,738
$ 1,117,748
1.7%
Development Office grant proposals - $1,000,000
Public Programs grant proposal Kellogg Racial Healing GSC - $611,184
PLA grant proposals - $474,000
PLA grant proposal – NNLM U of I Healthy Communities - $180,833
PLA grant proposal – IMLS Inclusive Internships - $80,890

6. Fiscal Year 2018 Total ALA Budgetary Ceiling
$14,906,005
(Unexpended balance remaining from fiscal year closing) +
$52,886,733
(Anticipated in upcoming fiscal year) =
$67,792,739
Budgetary Ceiling

7. Current fiscal year results
Four Months Ending

8. FY 2018 Total ALA – Four Months Ending 12/31/17 -
ALA is still a financially sound and strong organization with net assets of $40.2 million
Revenues were on budget at $14.1 million
Expenses were under budget by $497,313 at $15.4 million
Net operating (expenses) were $1.3 million and better than budget by $540,494

9. Total ALA Revenues/Expenses/Net Revenue - Four Months Ending 12/31/17 -
FY18 Actuals
FY18 Budget
Budget
Variance
FY17 Actuals
Total Revenues
$ 14,139,452
$ 14,096,271
$ ,181
$11,352,467
Total Expenses
$ 15,449,856
$15,947,169
$ 497,313
$13,571,627
Net Revenue (Expenses)
$ (1,310,404)
$ (1,850,898)
$ 540,494
$(2,219,161)
Total ALA Revenues
$14.1 million and over budget by $43,181 – on budget
Revenue shortfall in General Fund ($283,938)
Revenue shortfall in Divisions ($153,852)
Revenue shortfall offset by gain in interest income from LTI ($517,770)
Due to required year end mandated distribution for mutual fund holdings
Total ALA Expenses
$15.5 million and under budget by $497,313 (-3.1%)
Expense savings in the Divisions ($239,003)
Fairly equally spread over Overhead, Publications, Indirect, Travel Outside Services etc.
Net Revenue (Expenses)
($1.3 million) better than budget by $540,494 (29.2%)

10. FY 2018 General Fund - Four Months Ending 12/31/17 -
All revenue categories, primarily Publishing Services, were under budget by $297,437 (-4.5%) at $6.3 million
Expenses were slightly less than budget by $119,445 (-1.5%) at $7.8 million
The result was net (expenses) of $1.4 million, which is more than the budgeted net expense of $1.3 million by $192,986 (-15.3%)

11. General Fund Revenues/Expenses/Net Revenue - Four Months Ending 12/31/17 -
FY18 Actuals
FY18 Budget
Budget
Variance
FY17 Actuals
Total Revenues
$ 6,361,136
$ 6,645,074
$ (283,938)
$ 5,902,785
Total Expenses
$ 7,817,196
$ 7,908,148
$ 90,952
$ 7,793,647
Net Revenue (Expenses)
$(1,456,060)
$( 1,263,074)
$(192,986)
$(1,890,662)
General Fund Revenues
$6.4 million and under budget by $283,938 (-4.3%)
Publishing Services were under budget by $204,819 (-4.9%) related to the timing of recognition of AASL standards joint project and other titles
- Primarily in ALA Editions by $126,653 (-9.7%) at $1.2 million – lower sale of books
($110,514)
- Edition revenues are ahead of last year ($845,868)
On track to meet full year revenue budget
AASL Standards on track to exceed budget
17 new titles published. On track to publish 60 for the year
Improved marketing results due to reorganized staff & marketing plans
Secondarily in ALA E-Learning by 75,289 (-23.6%) at $243,625 related to lower online sales
Publishing units are implementing their FY18 – FY20 strategic plans
Publishing looking to meet projected revenues and controlling costs
General Fund Expenses
$7.8 million and less than budget by $90,952 (-1.2%)
Overhead recovered was under budget by $334,035 (21.0%) due to lower gross revenue and division revenue
Net Revenue (expense) – As a result net expenses more than ($1.5M), better than last year

12. FY 2018 Divisions - Four Months Ending 12/31/17 -
Division revenue of $4.9 million was less than budget by $153,852 primarily from lower registration fees related to the AASL conference ($182,388) and lower overall dues ($93,876)
Division expenses of $5.2 million were less than budget by $239,033 evenly spread across all categories
Net expenses were less (better) than budget at ($433,667) by $85,181

13. FY18 Actuals FY18 Budget Budget Variance FY16 Actuals*
Divisions Revenues/Expenses/Net Revenue - Four Months Ending 12/31/17 -
FY18 Actuals
FY18 Budget
Budget
Variance
FY16 Actuals*
Total Revenues
$ 4,845,210
$ 4,999,062
$ (153,852)
$ 4,540,859
Total Expenses
$ 5,193,696
$ 5,432,729
$ 239,033
$ 4,976,504
Net Revenue (Expenses)
$( 348,486)
$( 433,667)
$ 85,181
$( 435,645)
Total Revenues were
- $4.8 million and less than budget by $153,852 (-3.1%)
Primarily in PLA ($170,000) i.e. dues - timing, sales of training via Project
Outcome which should meet budget. A positive not was that $25,000 in
revenue was not realized in the Dynamic Planning Institute as PLA
provided the program to the Rural and Small libraries at a reduced cost,
which was viewed as an investment
AASL introduced the AASL Standards at their national conference.
Anticipated revenues from the sales were not recognized in December.
Another positive note was that ALSC reported revenue that was better
than budget by $187,407 primarily due to Seal sales.
Total Expenses were
- $5.2 million and better than budget by $239,033 (4.4%) primarily in travel
and outside services
Net Expenses of ($348,486) were better than budget and significantly better than the same time last year.
*FY16 actuals used to compare like years with two national division conferences being held.

14. FY 2018 Round Tables - Four Months Ending 12/31/17 -
Revenues were less than budget by 1.2% at $133,172
Expenses were less than budget across the board by $111,332 at $16,023 primarily in EMIERT ($57,253)
Net revenue was $117,149

15. FY18 Actuals Budget Variance
Round Tables Revenues/Expenses/Net Revenue - Four Months Ending 12/31/17 -
FY18 Actuals
FY18 Budget
Budget
Variance
FY17Actuals
Total Revenues
$ ,172
$ 134,764
($ 1,592)
$ ,474
Total Expenses
$ ,023
$127,355
$111,332
$ ,056
Net Revenue
$ ,149
$ 7,409
$109,740
$ ,418
Total Revenues
- At $133,172 RT revenues are on budget
- GODORT was less than budget by $5,994
- Shortfall offset by GLBTRT being over budget by $8,032
Total Expenses
- Virutally all RT’s underspent their budgets during the period
- Primarily in EMIERT ($58,300) and LIRT ($11,428)
- Typical for this time of year and represents more of an allocation issue
Net Revenue
- Was significantly over budget by $109,740

16. Review - The Council Referral Process
Referrals from Council to BARC are vitally important to the workings of the body
The process should be as straight forward and inclusive as possible
BARC discussed the current process at its fall meeting and assigned a number of committee members with the task of reviewing the process
A preliminary process was reviewed at this meeting and additional refinements will be made
The Chair will report back to Council on its findings and any suggested recommendations.
BARC and F&A had a very in depth discuss to understand the current process
The committees recognized that the current process had a number of weak points that needed to be addressed
A small working group put forward a recommendation to strengthen the process
After it was throughouly discussed it was determined that additional work was needed to refine the recommendation
This Photo by Unknown Author is licensed under CC BY-NC-ND

17. ALA Financial Learning Series
Topics of Webcasts
Budget Planning for a Pre-Conference or a One Time Event
Organizational Structure
Budget Cycle and Process
The Operating Agreement
The Long-Term Investment Fund
Round Tables Financial Orientation

18. Online ALA Financial Information
Treasurer’s Page
Offers Reports, Resources and Links to the Six Webcasts
ALA Online Learning Offerings by Unit
Brief Descriptions of Units’ Learning Programs
ALA Online Learning Webcasts
links to the page for the six webcasts
ALA YouTube Channel - Financial Learning Series Playlist

19. Thank you for your support