1. Pacific Institute Financial Summary
Prepared for PI Board of Directors September 19, 2018

2. PI Financial Dashboard - Board
As of August 31, 2018
Indicator ($ in 000s)
Actual
Target
Thru Q2
Surplus/deficit
Projected 2018
169 10
134
Conservative Projection
(182)
YTD
(311)
(125)
(273)
Income
Weighted Projection 2018
2,713
2,360
2,618
2,362
1,322
1,449
941
Unrestricted Income
401
402
367
185
164
118
New income vs. budget
250
265
135
Expenses
1,632
1,574
1,214
Balance Sheet
Unrestricted Net Assets (URNA)
319
645 36
Key Metrics
Operating Reserves (Months)
1.5
3+?
0.2
Liquidity (Months)
2.5
1-3?
1.2
All Staff Utilization Rate (Q1-Q2)
62%
60%
URNA, Operating Reserves, Liquidity all improved since June
Still a ways to go until we’re out of the danger zone
YTD deficit increased since June but pipeline strong over next few months
Weighted Projections show surplus for the year
Delays in recent payments and “no room for error” necessitated Conservative Projections.
Conservative projections show deficit (account for delays)
Ahead of YTD target for Unrestricted Income (still need to raise >$200K to hit budgeted goal)

3. Cash Balance Projections As of August 31, 2018
Solid Green = Actual Savings + Investments
Reached critical level in June/July
Finance Committee monitored / recommended actions:
freeze on all non-essential expenses (hold on Development position still in effect)
amended Global Compact Foundation contract (increased amount and expedited payment schedule)
expense cuts contingency plan discussed
Dotted Green: Receivables only (current contracts)
Dotted Blue: Weighted Projections
Dotted Orange: Conservative Projections
Actual projection will determine when we hire the Development position, need for further action

4. Income Summary As of August 31, 2018
Weighted
Projection Conservative
To Date (Sep-Dec) Projection
Awarded/Assured 1,303, , ,969
Probable (80%) , ,800
Possible (40%) , ,334
Potential (20%) ,
Total 2,712,749 2,362,149
Target = $2,544,000 (estimated expenses)
Almost ¾ of budgeted goal in Awarded/Assured
Strong Pipeline (871K weighted remainder of 2018)
If weighted projections are accurate, we will raise more than our projected expenses
But, we’ve had a number of delays in recent years, so we incorporated the possibility of delays into a conservative projection
90% of our 2018 program income in contracts
Will monitor closely over rest of year
Which track we end up on will determine if we achieve surplus or if we need to take corrective action

5. Income Pipeline Sep-Dec 2018
Weighted
Possible
Projection
Gordon & Betty Moore Fdn
24,000
Wm & Flora Hewlett Fdn
40,000
Berwind Foundation
30,000
Kohler
20,000
Cynthia & George Mitchell Fdn
Goldsmith
80,000
Woodard & Curran
Audubon
2,667
Total Possible
290,667
Potential
Gordon and Betty Moore Fdn
10,000
TBD (Public Water Mgmt DB)
Coca-Cola Foundation
60,000
Total Potential
Weighted
Probable
Projection
DONATIONS (projected)
181,600
UN Human Settlements Prog.
16,000
CA Council on Science & Tech.
7,467
Int'l Water Mgmt Inst
40,000
Leonardo DiCaprio Fdn
Pisces Foundation
60,000
Walton Family Foundation
100,000
WRI
56,000
Total Probable
501,067

6. Finance Committee Goals: Q4
Continue to update Dashboard, monitor income/cash balance progress, recommend any corrective action if necessary
Recommend operating reserve policy and target to board in Dec
Work with staff on creation of 2018 budget (to be approved by board in Dec)