1. Alaska Seafood Marketing Institute
Overview & Proposed FY20 Admin Budget
Becky Monagle
Finance Director
April 23, 2019
Good morning!
My name is Becky Monagle and I am the Finance Director for ASMI. Today I have a short presentation regarding the overview of the FY20 ASMI budget and the proposed Admin budget.

2. FY20 ASMI Proposed Budget by Program
FY19 Budget
FY20 Budget
Diff
Executive Office/Admin
$ 2,000,000
$ 2,240,000
$240.0
Communications
$ ,000
$ ,000
($ 30.0)
Technical
$ ,000
$ ,000
$ 15.0
Sustainability/RFM
$ ,000
$ ,000
($105.0)
Retail
$ 1,910,000
$ 1,850,000
($ 60.0)
Foodservice
$ 1,950,000
($100.0)
International – MAP/Match
$ 6,750,000
$ 7,057,945
International – ATP
$ 2,251,867
International – ATP/A-Match
$ ,334
Global Food Aid
$ ,000
$ ,000
$ -
Consumer PR
$ ,000
$ 1,030,000
$ 60.0
GRAND TOTAL
$16,000,000
$18,694,146
This slide shows the comparison between the FY19 and FY20 budget for all of the programs. The spend plan for both FY19 and FY20 is $16 million, however the difference shown is related to an increase in FY20 MAP authority as well as the new ATP funds with the match requirements. We have moved some budgets around to better reflect the needs of the organization as a whole. The new ATP funds will help support other program’s expenses for items that could be covered under that grant.
Admin was increased by $240,000 which I will cover in more detail on the next slide.
Communications was decreased by $30,000 to move to Technical to cover new position and ATP funds that will be further explained by Jeremy in the Communications update
Technical – increase from Comms
Sustainability/RFM – removed contract amount to be absorbed by ATP grant
Retail/Foodservice – Removed contract with Revelry as this was moved to Edelman to monitor trade PR
A note about the capital appropriation…..as of mid-April the balance remaining is currently $114k which is the same balance as last year. The original capital appropriation is set up for 5 years and would have terminated June 30, 2018, however, we requested an extension for another year. If the money is not spent by June 30, 2019, we will request another extension at that time.
Capital AR – Balance currently $114k.

3. Admin/Exec Office Proposed FY20 Budget
Diff
Personal Services
$ ,000
$ ,000
$ 20,000
Travel
$ ,000
$ ,000 $
Fulfillment House
$ ,000
$ ,000
Boards/Committees
$ ,000
$ 35,000
SMIS
$ ,000
$ ,000
Consolidated Costs
$ ,000
$ ,000
$ 80,000
Core Costs
$ ,000
$ ,000
Boston Go Wild
$ ,000
$ ,000
Website/IT Support
$ ,000
$ ,000
$105,000
Law/Trademark Costs
$ ,000
$ ,000 $
GRAND TOTAL
$ 2,000,000
$ 2,240,000
$240,000
This is the proposed budget for the Admin/Executive Office for FY20. This budget is increased by $240,000.
Personal Services ($20k) – The positions supported in this program are the Executive Director, Finance Director, Executive Assistant, Administrative Specialist and a part-time intern.
Travel (no change) – this includes travel for the admin staff and Executive Director.
Fulfillment House (no change) – this is the KP contract and primarily charges related to the admin and storage costs for the materials at KP. All printing of specific materials are charged to the program that it benefits.
Boards & Committees ($35k) – This is for all board and committee travel and meeting arrangements with the exception of the RFM (Responsible Fisheries Management), FSC (Fisheries Standard Committee) and IMC (International Marketing Committee). They are charged directly to their specific program budgets. The FY20 budget has been increased to provide for a CAP (Customer Advisory Panel) meeting.
SMIS (Seafood Market Research & Information Service). This is the contract with McDowell Group to perform economic research and projections along with facilitating meetings, etc. No change.
Consolidated costs ($80k) – This is the category that supports the office with rent, copiers, office supplies, cellular phone charges, internet, circuits, just to name a few. We were able to get out of our Seattle lease in November 2018 and paid $35k instead of the full year of $92k. There is a plan to remodel the cubicle space in the upstairs portion of the Juneau office which may occur at the end of FY19 or early FY20. This will allow for us to add two more cubicles so that we can add the ATP (Agricultural Trade Promotion Program) position and our intern so that the conference area does not disturb staff members for meetings.
Core costs (no change) – these are the charges that we pay to other state agencies such as support of DCCED admin services, Commissioner’s office, Human Resources, Risk Management, State accounting and payroll system, etc. There have been some changes in this area on how these items are allocated by the department, however, until the year is complete, I won’t know the true amounts. It’s possible the increase to the line above may need to be used to support this bucket in the future.
Boston Go Wild reception (no change) – This is the cost of the reception for the Boston Seafood Show.
Website/IT Support. ($105k). We have increased our Website/IT support as we still have projects for our websites. We were able to get a new website up in February of this year but still have projects to improve upon which include updates to the different pages and updating the suppliers directory. However, we have implemented a digital asset management system which has been charged to the Admin budget for FY19.
Trademark Costs and other Dept of Law support (no change) – This category is a placeholder in the case that we need legal assistance or for Trademark issues that affect the whole of ASMI. Programs pay out of their own program budget for legal costs.

4. Proposed ASMI Spend Plan
FY18 Actuals
FY19 Projected
FY20 Projected
FY21 Projected
FY22 Projected
FY23 Projected
PY Carryforward
$19,065.3
$18,084.1
$14,796.5
$11,371.5
$ 9,257.2
$ 7,150.3
Fed Receipts
$ 4,209.6
$ 4,212.4
$ 6,769.2
$ 6,751.9
$ 5,462.5
$ 4,000.0
GF Match
$ 1,000.0 $
SDPR
$ 9,860.2
$ 8,500.0
Total Revenue
$34,135.1
$30,796.5
$30,065.7
$26,623.4
$23,219.7
$19,650.3
Spend Plan
$16,051.0
$16,000.0
$18,694.2
$17,366.2
$16,069.4
$15,000.0
Ending Carryforward
$ 4,650.3
This is the carryforward spreadsheet that you have seen previously with some updated numbers. You can see that we started FY19 with a carryforward amount of $18m. Our estimated federal receipts is $4.2m and with our conservative estimate for fish taxes at $8.5m, ASMI would have a total revenue amount of just over $30m. If we fully spend our approved budget amount of $16m, then $14.7m will carryforward into FY20. Using these numbers moving forward with new ATP funds, etc., you can track how our fund balance is being reduced over the next few years. At the end of FY22, we end up with an estimated balance of just over $7 million. This amount will be used as a starting point on the next slide.

5. FY2023 Cash Flow issues CF Balance Assumptions:
$7,150.3
July – Oct Exp
($2,846.3)
$4,304.0
1st Qtr Tax Rev
$ 1,482.1
$5,786.1
Nov – Jan Exp
($2,604.9)
$3,181.2
2nd Qtr Tax Rev $
$3,468.0
Feb – Mar Exp
($1,506.4)
$1,961.6
3rd Qtr Tax Rev $
$2,929.7
Apr – Jun Exp
($3,140.2)
($ )
Assumptions:
FY19 spend/rev thru was used. Spend plan was $16,000.0
Here is an update for estimated cash flow for a future year. Starting with the estimated end of year amount in the ASMI fund for FY22 of just over $7 million
it appears that we may run out of cash sometime in June of This is using the estimates from the prior slide and based on current year expenditures through March Remaining year estimates are based on activity for FY18.
So starting with the $7m balance, we spent $2.8m for the first four months of FY19 which brings the fund balance down to $4.3m. ASMI received $1.4m in tax revenues after the first quarter which brought the balance up to $5.7m. For the November to January timeframe, ASMI spent $2.6m which brought the balance down to $3.1m. Our second quarter tax amount was only $286,000 so balance is $3.4m. For February – March of 2019, we spent $1.5m which brings the balance down to $1.9m. The estimate for 3rd quarter tax is from last year (2018) of just less than a million and the April – June expenses are also from last year with an estimate of $3.1m. This shows that we may end up with a cash flow problem sometime in June of 2023.

6. Admin Program Highlights & Challenges
Digital Asset Management system set up
Seven RFPs will have been solicited
Three new hires and currently have three vacancies to be recruited for and filled
Last summer ASMI started looking into a digital asset management system to house all of our photos, videos and artwork that would be organized and available to both staff, industry and cooperators. ASMI staff researched and identified the best fit for our needs and we hired a contractor to review, tag and label our existing digital assets. We are nearing the final phase of importing these assets into the system and hope to have this system available within the next couple of months after some internal testing. This is a definite improvement for the whole of ASMI and required participation from all programs.
ASMI will have solicited for at least seven RFPs this year. The seven are as follows: Retail Marketing Representative, International Marketing Research, NEU OMR, EEU OMR, Southeast Asia OMR, Japan Consumer Marketing Campaign and a Sustainability Contractor. A lot of these are required with the new ATP funds that became available.
During this fiscal year, we had three new hires (John Burrows to support the Technical and RFM program), Leah Krafft (to support domestic, both Retail and Foodservice) and Michelle Kaelke (who is a fiscal person but primarily supports the international program)). As you are aware, we still have the ED recruitment that is ongoing and until that position is filled, Megan Rider will continue her role as the Domestic Marketing Director as that position will be recruited until the new ED is onboard. We will be re-classing the Sustainability Officer position to a new International Grants and Marketing Coordinator position which will be funded by the federal receipts for the ATP grant. This recruitment will occur in the near future.
DAM (NetX) costs for FY19 = $75, Ongoing = $10,000 for annual support and maintenance
Nicole contract = $15,000

7. Questions??
Thank you!