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BARC #3.19aEBD #3.19aFY2020 THREE – MONTH FINANCIAL DEPARTMENT COMMENTARYALA EXECUTIVE DEPARTMENTOverall, results from the 1st Q/FY2020 indicate concerns –and some of the stresses of change. As is typical of the 1st Quarter, timing issues are a recurring theme.ALA Conference Services is signaling a $(500,000) net variance from budget. At 3 weeks for conference, the Midwinter Meeting is below budget on registration, exhibit space sales and advertising. Expenses have been cut where possible. The ALA Conference Committee will be sponsoring invitational focus groups aimed at firming up plans for a replacement event in 2022 (San Antonio), following a transition event in 2021 (Indianapolis). At this point, Conference Services is projecting no change in the Annual Conference targets; AC reporting will begin with the 2nd Quarter.Reviewing commentary across units, there is a pattern of salary savings resulting from open positions. With variances from unit-to-unit, this reflects recruitment challenges, timing of vacancies, and budgetary concerns.IT is running 4% ahead of budget at the end of the 1st Quarter. While currently Operational expenses are under budget, Depreciation is over budget, due to the cumulated impact of prior year (2018-2019) overages, partially offset by prior year underspending (2015-2017). The IT FY20 spending plan has been substantially revised to accommodate the change in the depreciation schedule going forward. Revisions have been based on both lengthened timelines and improved cost information (e.g. post-bid cost figures vs. pre-bid estimates). Heavy budget/project monitoring in IT will continue. Other General Fund units within the Department are largely running well within budget, generating savings and/or increased revenue where possible.The FY2020 budget assumed completion of the sale of ALA’s Chicago real estate and a move to a new headquarters at the beginning of calendar 2020. Sale closed in November 2019, shifting a move date to late April 2020. That will impact the HR/Staff Support Services budget (see HR commentary). AASL held a successful National Conference (November 2019), but neither revenues nor expenses are fully reflected in the 1st Quarter financial report. Registration was strong and publications sold well in the bookstore. ACRL is running very close to target on a net basis. Classified ad revenue earned in the 1st Quarter is not fully reflected in the 1st Quarter report. ACRL membership continues to struggle. (See note on environmental change.)ALCTS is better than budget on a net basis, largely due to expense savings. Membership continues a slight decline. ALSC is better than budget on a net basis overall, though dues revenue is behind budget. Digital licensing revenue (seals) is well over budget due to collection of back payments. ASGCLA is better than budget on a net basis, with dues revenue close to target. The 1st Quarter results reflect the success of three online courses in September-October.LITA did not hold its annual LITA Forum in November 2019. The next Forum is scheduled for November 2020 (FY21), and will be planned jointly by LITA, ALCTS and LLAMA. Overall, LITA is running behind target on a net basis. Delays in hiring a new eLearning Acquisitions Editor meant that fall sessions were not scheduled, but LITA anticipates catching up by the end of the fiscal year.LLAMA reported revenue 3% over budget – and 33% over FY19, due to registration revenue from Building Projects 101 in October. Overall, LLAMA is slightly better than budget on a net basis.PLA is better than budget at the end of 1st Quarter, but still showing an operating loss due to the timing of the PLA Conference. The PLA Conference is scheduled in late February in Nashville; registration and exhibit sales are very strong. PLA dues revenue is on target.RUSA is better than budget on a net basis, with a negative variance in revenue but a larger positive variance in expenses.UNITED FOR LIBRARIES is behind budget, with lower revenues and higher expenses across categories. Some timing issues will correct in the upcoming quarters.YALSA held a successful Symposium in November 2019. As of the end of the 1st Quarter, YALSA was significantly better than budget on a net basis, with strong revenues from the Symposium. Overhead contribution to ALA for the 1st Quarter was $52,052, against a budget of $31,433. Signs of change in the broader environment:The following note appears in the ACRL commentary: “The environment is changing; in November 2019, a college-advising company scuttled its plans to release a list of 952 private, nonprofit colleges that it expects to run out of money and close in the coming years, according to a new financial-modeling tool, and since September 1, we’ve noted 59 school closures as we update our list of academic institutions.”GENERAL FUNDAOMR Departmental Overview and SummaryThe ALA Offices and Member Relations (AOMR) Department is made up of the following units: The AED Office (formerly MPS); Membership Development and Customer Service (MDACS); Office for Intellectual Freedom (OIF); Office for Human Resource Development & Recruitment (HRDR); Office for Diversity, Literacy & Outreach Services (ODLOS); Office for Accreditation (OA); Library and Research Center (LARC); Public Programs Office (PPO); and ALA Round Tables. ALA Membership Dues and Data (591-9152)Total Revenues Budgeted/Actual/Remaining:$ 5,530,879???$ 1,318,135$ (4,212,744)Total Expenses Budgeted/Actual/Remaining:$ 100,000$ 26,945$ 73,055Contribution Margin:$ 5,430,879$ 1,291,190$ (4,139,689)We have a negative variance on membership dues of $64,585 or 5% for the end of the first quarter of FY20; however, November through January is peak renewal season. In December, we have collected over $400,000 in membership revenue. In addition, we anticipate our membership numbers continuing to climb in early 2020 with the various ALA activities taking place including the PLA conference, Midwinter and the upcoming election. We also are releasing a new member benefit – the APA Salary Survey in early 2020 which we anticipate will drive membership growth.For FY20, we will leverage the new member benefit of the APA Salary Survey to drive recruitment and reinstatement for the organization and are updating our membership messaging. We are also working towards piloting new membership renewal tactics such as notices on ALA Connect, phone calls and a postcard.Membership SnapshotWe are closing the first quarter with 51,998 personal (individual) members and 57,331 total members. While this is a 2.04% decline from this time last year, a more accurate comparison is to November 2017 because of the Division conference cycle. This comparison reflects an increase in total members of 170 which means we are relatively flat. We have a slight decline in individual and corporate members since FY18, and an increase in organizational membership. Our largest area of growth remains student members which now represent 17% of individual members.Member Relations & Services (Operations) (MRS) (250) Total Revenues Budgeted/Actual/Remaining:$ 24,367???$ 5,233$ 19,134Total Expenses Budgeted/Actual/Remaining:$ (828,904)$ (187,442)$ (641,461)Contribution Margin:$ (804,537)$ (182,209)$ (622,328)Total unit finances at the end of the first quarter have a favorable variance of 8%. This is due to staff vacancies and the timing of some of the conference expenses.? Unit ReportsAED - Offices & Member Relations (AOMR) (200) (Formerly MPS) Total Revenues Budgeted/Actual/Remaining:$ 36,000$ 6,200$29,800Total Expenses Budgeted/Actual/Remaining:$ 475,078$112,124$362,953Net Revenue (Expense) Budgeted/Actual/Variance:$(439,078)$(105,924)$(151)AOMR - AED is running very close to budget at the end of the first quarter. Office for Accreditation (OA) (112)Total Revenues YTD Budgeted/Actual/Remaining:?$71,610$74,810$5,800Total Expenses TYD Budgeted/Actual/Remaining:$58,400$74,753$193,057Net Revenue (Expense) Budgeted/Actual/Variance:$13,210$57-$13,153Variance will close when payments for fall reviewers are received. ??????ALA Office for Diversity, Literacy & Outreach Services (ODLOS) (116)YTD BudgetActualVarianceVariance %Total Revenues$1,931$ 3,016$ 1,08556%Total Expenses before OH and Tax$ 105,249$ 88,556$ 16,69416%Contribution Margin-$ 103,318-$ 85,540$ 17,77817%Net Revenue Expense-$ 103,318-$ 85,540$ 17,77817%Ending Net Asset Balance-$ 103,318-$ 85,540$ 17,77817%In our first quarter revenue and expenses, the Office for Diversity, Literacy and Outreach Services is on track to meet our budget for FY20. Our main sources of revenue are webinars, workshops, and advising. For webinars (line 4105), we projected revenue of $2,400 for FY20. We are halfway to that projection after facilitating a series of webinars for Fairfax County Library system, though the check for $1,200 came in after the November close. The projected revenue for ODLOS’s continuing education and professional development work in FY20 is $7,500. This amount was originally budgeted to registration fees (line 4200), and $1,250 hit that line for workshops we facilitated in September 2019 for the New Jersey Library Association. However, per a subsequent conversation with Denise Moritz, the revenue for actuals is now hitting the charge line that best fits: Donations/Honoraria (line 4400) for our honoraria for facilitating workshops and Miscellaneous Revenue (line 4490) for stipends for advising on projects. So far in FY20, revenue for ODLOS includes the aforementioned $1,250, in addition to $1,500 under Miscellaneous Revenue (the first installment of the ODLOS Interim Director’s stipend for advising on a literacy project with Providence Public Library) and over $3,000 for workshops at the New York Library Association and Waukegan Public Library, which had not hit by the November close. Thus, as of the end of calendar year 2019, we are three-quarters of the way ($5,750) to our projected revenue ($7,500) for FY20.In terms of expenses, the first quarter report shows that we are overbudget in Transportation (5210) for actuals versus year to date. These expenses are high because of travel to facilitate workshops; when the checks from the host institutions hit, the line will get credited, and the expenses will go down significantly. Lodging and Meals (5212) also looks overbudget, but this is due to a data entry or saving error in the budget template. The budget shows $0 for line 5212 but should have been entered as $5,104. This discrepancy is being offset by other areas in which the Office is underspending, including Salaries and Wages (5000) and Employee Benefits (5010), which reflect variances of approximately $17,000 and $5,000, respectively, owing to the vacancy in the ODLOS Director position. Finally, the first quarter budget shows year-to-date variances in Order Processing/Fulfillment (5433) and Royalty Expense (5540), but these were known exceptions, and the lines will be credited through IUTs from the roundtable budgets responsible for these expenses. Office for Human Resources Development & Recruitment (HRDR) (106)Total Revenues Budgeted/Actual/Remaining:$ 40,500$ 600$39,900Total Expenses Budgeted/Actual/Remaining:$ 258,867$51,636$207,231Net Revenue (Expense) Budgeted/Actual/Variance:$(218,367)$(51,035)$(14,794)HRDR is slightly over budget due to timing issues for professional services expenses. Office for Intellectual Freedom (108)Total Revenues Budgeted/Actual/Remaining:$120,000$22,759$97,585Total Expenses Budgeted/Actual/Remaining:$634,219$128,082$515,137Net Revenue (Expense) Budgeted/Actual/Variance:$(523,219)$(105,667)$(417,552) 5% underOn a project basis, revenues for the Office for Intellectual Freedom’s administrative budget are 70% or $1833 under budget; Banned Books Week is 33% or $9,168 under budget; and the Journal for Intellectual Freedom are 11% or $334 under budget, though subscriptions for the Journal are 32% ahead of budget. For our November close, overall revenues for OIF are 34% under budget. These results are due to a decline in our usual level of Banned Book Week sales in September 2019. Posters, bookmarks, and other items for the 2019 Banned Books Week campaign sold out in FY19 and were not available for sale in September, despite demand for those materials. We chose not to restock 2019 materials after reviewing the costs of reprinting with ALA Graphics. Other sources of revenue, such as the online webinars co-sponsored with ALA e-Learning, are not slated to produce income until later in the year. On a project basis, expenses for the Office for Intellectual Freedom’s administrative budget are 14% or $16,768 under budget, Banned Books Week expenses are on budget ($5.00 over!) and the Journal for Intellectual Freedom is 4% or $333 under budget. For the November close, overall expenses for OIF are 11% or $16,430 under budget.OIF, in cooperation with ALA Graphics and Production Services, is designing the 2020 Banned Books Week campaign and developing additional “evergreen” products to help sustain revenues over the year. We anticipate that revenues for this year’s campaign – which are realized primarily in May through August – will match or exceed 2019’s revenues. We are also exploring additional fundraising and revenue activities and anticipate year-end budgetary transfers from the Intellectual Freedom Endowment and the Freedom to Read Foundation that will offset certain expenses, salaries, and benefits. Public Programs Office (PPO) (115)By Line ItemAnnual BudgetActualYTD BudgetVariance $Variance %Prior Year Actual(5911) IUT/OVERHEAD$276,305$52,718$69,076$16,35924%(4300) GRANTS/CONTRACTS/AWARDS2,348,023401,232580,232-179,000-31%(4400) DONATIONS/HONORARIA$35,000$60,765$8,750$52,015594%(4420) INT/DIV$51,447$10,518$12,862-$2,344-18%(4421) ROYALTIES3,200$0800-800-100%(4200) REGISTRATION FEES$45,036$0$11,259-$11,259-100%(3000) BEGINNING NET ASSETS$0$0$0$00%$2,089,655General FundNET REV/EXPENSE GEN FUND ADMIN-$305,386-$110,551-$73,413-$37,138-51%Unit 115 RollupYTD BudgetedActualRemainingTotal Revenues Budgeted/Actual/Remaining$613,903$472,514$2,010,192Total Expenses Budgeted/Actual/Remaining$677,874$529,074$2,224,454Net Revenue (Expense) Budgeted/Actual/Variance-$63,971$28,638-$299,459Donations are way ahead of budget, but everything else is a little behind. That is all due to timing and a number of mischarged items for which I have requested and awaiting backup. My expectation is we will be on budget when reporting catches up.Library and Information Research Center (LIRC) (104)Total Revenues Budgeted/Actual/Remaining:$ 0$0$0Total Expenses Budgeted/Actual/Remaining:$478,870$69,647$409,223Net (Expense) Budgeted/Actual/Variance:$(478,870)$(69,647)$46,801The Library is running under budget due to staff vacancies in open positions. It is anticipated that there will be some additional expenses throughout the fiscal year associated with the headquarters move and increased services of the ALA Archives at the University of Illinois at Urbana-Champaign (UIUC). Round Tables Summaries EMIERT (613)Total Revenues YTD Budgeted/Actual/Remaining:$63,686$40,500$246,329Total Expenses TYD Budgeted/Actual/Remaining:$39,790$15,928$172,789Net Revenue (Expense) Budgeted/Actual/Variance:$23,896$24,572$676EMIERT brought in significantly more dues revenues in the fall than budgeted, which can likely be attributed to the new logo/branding developed in the summer of 2019. The Coretta Scott King Book Awards seals sales fluctuate each year depending on popularity of titles chosen, but there is always a spike in seals revenue in February, following the Youth Media Awards. ERT (602)Total Revenues YTD Budgeted/Actual/Remaining:$2,375$1,342$8,158Total Expenses TYD Budgeted/Actual/Remaining:$6,364 $2,740$5,115Net Revenue (Expense) Budgeted/ Actual/Variance:-$3,989-$1,398$2,591FMRT (617)Total Revenues YTD Budgeted/Actual/Remaining:$1,800$954$6,246Total Expenses TYD Budgeted/Actual/Remaining:$1,725$122$6,778Net Revenue (Expense) Budgeted/Actual/Variance:$75$832$757Most of FMRT expenses and donations will occur in the months leading up to Annual.GAMERT (616)Total Revenues YTD Budgeted/Actual/Remaining:$1,250$1,723$5,277Total Expenses TYD Budgeted/Actual/Remaining:$825$213$8,787Net Revenue (Expense) Budgeted/Actual/Variance:$425$1,510$1,085GODORT (604)Total Revenues YTD Budgeted/Actual/Remaining:$6,476$3,791$29,311Total Expenses TYD Budgeted/Actual/Remaining:$5,379$6,082$23,859Net Revenue (Expense) Budgeted/Actual/Variance:$1,097-$2,291-$3,388GODORT variance is in the negative because a payment was made to ALA Production Services for DTTP. It will balance out when more revenue comes in.IFRT (605)Total Revenues YTD Budgeted/Actual/Remaining:$4,875$4,127$17,873Total Expenses TYD Budgeted/Actual/Remaining:$4,989$505$28,948Net Revenue (Expense) Budgeted/Actual/Variance:-$114$3,622$3,736The IFRT variance is at $3,736 because the round table had very few expenses in November. Most of its expenses occur during the months leading up to ALA Annual Conference. ?IRRT (606)Total Revenues YTD Budgeted/Actual/Remaining:$2,788$2,830$8,320Total Expenses TYD Budgeted/Actual/Remaining:$2,325$275$9,025Net Revenue (Expense) Budgeted/Actual/Variance:$462$2,555$2,092LEARNRT (614)Total Revenues YTD Budgeted/Actual/Remaining:$3,469$2,157$11,718Total Expenses TYD Budgeted/Actual/Remaining:$3,461$263$13,582Net Revenue (Expense) Budgeted/Actual/Variance:$7$1,894$1,886Most of LearnRT expenses will occur in the months leading up to Annual.LHRT (601)Total Revenues YTD Budgeted/Actual/Remaining:$1,750$1,954$5,044Total Expenses TYD Budgeted/Actual/Remaining:$1,620-$1,534$8,534Net Revenue (Expense) Budgeted/Actual/Variance:$130$3,489$3,359LHRT received a reimbursement from Penn State in FY2020 that was charged in FY2019.LIRT (612)Total Revenues YTD Budgeted/Actual/Remaining:$6,750$6,353$20,647Total Expenses TYD Budgeted/Actual/Remaining:$6,440$773$24,988Net Revenue (Expense) Budgeted/Actual/Variance:$310$5,580$5,270Most of LIRT expenses and donations will occur in the months leading up to Annual.LRRT (608)Total Revenues YTD Budgeted/Actual/Remaining:$2,500$27,062-$17,062Total Expenses TYD Budgeted/Actual/Remaining:$2,119$13,189-$3,631Net Revenue (Expense) Budgeted/Actual/Variance:$381$13,872$13,491LRRT had a Research Conference in October 2019.LSSIRT (618)Total Revenues YTD Budgeted/Actual/Remaining:$1,175$922$3,778Total Expenses TYD Budgeted/Actual/Remaining:$1,180$111$4,609Net Revenue (Expense) Budgeted/Actual/Variance:-$5$812$817Most of LSSIRT expenses and donations will occur in the months leading up to Annual.MAGIRT (609)Total Revenues YTD Budgeted/Actual/Remaining:$2,963$1,521$10,329Total Expenses TYD Budgeted/Actual/Remaining:$2,944$245$11,530Net Revenue (Expense) Budgeted/Actual/Variance:$19$1,276$1,257Most of MAGIRT expenses and donations will occur in the months leading up to Annual.NMRT (607)Total Revenues YTD Budgeted/ Actual/ Remaining:$4,561$4,908$13,335Total Expenses TYD Budgeted/ Actual/ Remaining:$4,031$1,360$14,763Net Revenue (Expense) Budgeted/ Actual/ Variance:$530$3,548$3,018NMRT is on target. Expenses and revenues will occur later in the fiscal year.RMRT (615)Total Revenues YTD Budgeted/ Actual/ Remaining:$1,300$1,548$3,652Total Expenses TYD Budgeted/ Actual/ Remaining:$255$186$3,334Net Revenue (Expense) Budgeted/ Actual/ Variance:$1,045$1,363$318RMRT is on target expenses and revenue will near Annual Conference.SORT (611)Total Revenues YTD Budgeted/Actual/Remaining:$600$155$2,245Total Expenses TYD Budgeted/Actual/Remaining:$355$19$1,401Net Revenue (Expense) Budgeted/Actual/Variance:$245$136-$109SORT collects dues; however, they have no activity outside of that.RRT (formerly GLBTRT) (619)Total Revenues YTD Budgeted/Actual/Remaining:$8,399$7,027$27,173Total Expenses TYD Budgeted/Actual/Remaining:$7,276$6,076$15,154Net Revenue (Expense) Budgeted/Actual/Variance:$1,123$951-$172Due to their name change, RainbowRT also went forward with a logo redesign and brochure update after the FY20 budget was created. They also paid a deposit on space for their June 2020 50th anniversary celebration, which will be at least partially recuperated via ticket sales and corporate sponsorships. They also typically see a spike in seals sales for the Stonewall Book Awards in February, following the Youth Media Awards.SRRT (619)Total Revenues YTD Budgeted/Actual/Remaining:$2,798$3,418$7,772Total Expenses TYD Budgeted/Actual/Remaining:$666$1,183$9,762Net Revenue (Expense) Budgeted/Actual/Variance:$2,131$2,235$104SRRT decided to move forward with a logo redesign and promotional card update after the FY20 budget was created. This was the only main expense to hit in the fall of 2019. They also brought in more dues in this time period than expected, creating surplus revenue in line 4000/DUES/PERSONAL. SUSTAINRTTotal Revenues YTD Budgeted/Actual/Remaining:$950$1,077$2,723Total Expenses TYD Budgeted/Actual/Remaining:$241$136$3,241Net Revenue (Expense) Budgeted/Actual/Variance:$710$940$231SustainRT’s revenue and expenses will occur leading up to annual conference.Conference Services2020 Midwinter MeetingConference ServicesActualBudgetedVarianceVariance %Nov-19Total revenues$0 2,549,000$0 0%$2,549,000 Total expenses$93,992 $2,967,863 $61,837 -192%$2,873,871 Net revenue($93,992)($418,863)($61,837)-192%($324,871)Notes:Accounting will post revenue for the January 2020 report which will be the month Midwinter occurs.? Registration has collected $700,558 in fees. Sales has collected $911,228 in exhibits and $100,274 in sponsorship and advertising. Total revenues to date equal $1,712,060. Registration is currently at 67% to budget ($1,040,000) and sales are currently 83% to budget ($1,215,000). Three weeks out from Midwinter 2020, it is unlikely that the Philadelphia event will make the targeted budget projections. Efforts have been taken to reduce expenses where feasible. The decline in performance continues to support the trend illustrated over the past several years for this meeting.Planning is continuing on the development of an alternative event, which would be focused on professional development but would also enable essential governance functions. 2020 Annual ConferenceAnnual Conference initial Annual Conference projections will be reported with the 2nd Quarter. Communications & Marketing OfficeNet revenues for the first three months of FY 2020 are $ 1,848 vs a YTD budget of $4,080, which is 55% behind budget due to decreased sales in Libraries Transform-related products, from which CMO receives royalties from ALA Graphics. However, CMO received a $125k donation from Apple, to be credited to the campaign account (49-100-0328), which is not included in this binder. Total expenses for the first three months of the financial year were 15% under budget, mostly due to a budgeted position (social media manager) remaining vacant. A job offer will be extended in January 2020.Development OfficeYTD ActualYTD BudgetVarianceVariance%Remaining BudgetTotal Revenues5,00005,000100%-5,000Total Expenses155,356163,32212,9668%573,510The Development Office received a restricted gift of $5,000 to support a consulting project related to launching the new Philanthropy Advisory Group. We are in conversations with the donor and anticipate that we will receive further contributions to support consulting projects that will benefit our fundraising efforts. The rest of the contributions raised by the Development Office appear as revenue in other units.The Development Office is 8% under budget for expenses. This is primarily due to staffing transition, as the Assistant Director for Major Gifts left his role in mid-September. Happily, we have made a hire and the new Assistant Director of Major Gifts is due to start in mid-January. Several significant expenses, related to Annual Fund mail campaign, were invoiced in December. Likewise, most significant expenses related to meal functions, some travel, and other printing, will appear later in the fiscal year. On the whole, we project that we will control our expense budget and finish the fiscal year slightly under our initial projections for expenses, while continuing to build infrastructure to accomplish the activities outlined in the investment budget. NOTE: When donors make a gift to ALA, they are usually not designating the Development Office as the beneficiary of their support. We show only the revenue that is specifically designated to support the Development Office, and the other revenue raised by the Development Office appears on the revenue line in other units. Executive OfficeUnit BudgetYTD ActualYTD BudgetVarianceVariance %Remaining BudgetGovernance (Unit 101: Council and Committees)$82,087$17,593$33,657$16,06448%$23,554Governance(Unit 102: Executive Board)$365,202$55,029$90,511$35,48239%$71,215Executive Unit(Unit 103)$1,583,874$300,852$332,990$32,13810%$1,283,022Executive Office / Center for the Future of LibrariesYTD ActualYTD BudgetVarianceVariance%Remaining BudgetTotal Revenues1,3183,000-1,683-60%8,683Total Expenses37,14758,15921,01136%157,241Net revenues for the first three months of FY 2020 are $1,318, which is 60% behind budget. Realized revenue for Donations/Honoraria is running behind due to a delay in invoicing for several workshops. FY 2019 revenue finished at $17,012, which was 70% ahead of budget – FY 2020 should end ahead of budget as presentations and workshops remain steady with additional consulting projects also contributing revenue. ?Total expenses for the first three months of FY 2020 are $37,147, which is 36% under budget. Most of those savings are realized in Professional Services and Travel and Related Expenses. Professional Services remained under budget as the Center and its Advisory Group re-examined certain programs. Travel and Related Expenses remained under budget as the Center limits non-reimbursed travel. Expense areas that were over budget included Payroll and Related Expenses (over budget due to attrition in a one-person unit). Human ResourcesALA’s HR 1st quarter budget is tracking actual to budgeted dollars. The actual dollars for transportation and lodging are high because of the ALA ED Search. These dollars will be moved to the ALA ED search budget, thus improving the HR budget. The actual Staff Recruitment/Relocation dollars spent is higher than budget due to annual recruitment subscriptions ( and ) being paid during 1-Q. This should even out in 2-Q. Overall, ALA HR is nearly $23,000 better than budget. HR will continue to monitor expenses and avoid discretionary expenses. The ALA Staff Support Services budgets (Distribution Center, Staff Support Services and Building Maintenance) are all performing within budgeted dollars. ALA Support Services, for 1-Q is performing approximately $92,000 under budget. Since ALA will not move offices until April 2020, these budgets will be monitored closely to ensure that unnecessary expenses are avoided and alternative vendors are sought out when appropriate. Information Technology YTD BudgetYTD ActualVarianceVariance%Remaining Current Budget$839,972$876,829$36,8574%$2,983,803As of November 2019, IT expenses are 4% or $36,857 over budget. Professional services and software maintenance are under budget due to timing issues. Depreciation expense is high due to eCommerce expenses for Dues, Donations, eStore, and eLearning systems. IT resources are currently being used on Dues and Donation eCommerce system, Phase II of the new eStore, the new eLearning eCommerce system, the ALA Connect system, infrastructure expansion implementations related to the Move.International Relations Office / Chapter Relations OfficeThrough November IRO 11-111 is on target $2,872 (4%) under budget.CRO 11-251 is quite a bit under budget $16,112 (38%) as three months of the Engage software contract has not been charged to the account yet, and expenses related to ALA’s participation in government and school conferences will be accruing later than expected.Publishing All unitsFY20 performance as of 11/30/19$ and % Variance Actual/BudgetFY20 full-year budgetTotal Revenues$2,663,087-$24,545/ -1%$10,950,816Total Expenses minus overhead$1,944,137-$55,990/ -3%$8,481,325Overhead$705,718$6,504/ 1%$2,901,967Net Revenue$136,745-$50,508/ -27%$28,419Significant revenue and expense variances, implications and prospects for the remainder of FY20ALA Publishing overall is tracking close to FY20 revenue goals YTD. The revenue results are supported largely by ALA Editions/Neal-Schuman’s strong Q1 which came in 20% or $141,000 above budget. (This was a predicted result of books that did not land as originally expected in FY19.) Increased revenue led to added related expenses, but the unit’s net revenue was still 23% above Q1 budget. Editions/Neal-Schuman has published 17 books in Q1 putting the unit on track to publish about 60-65 books in FY20, including new editions of extremely successful textbooks and new titles in the AASL/ALA Editions collaboration supporting the AASL Standards. The first book in that collaboration has been Editions’ top-seller since its mid-FY19 publication.Booklist revenue and expenses are tracking closely to budget, important for the biggest unit in Publishing. Advertising will face pressure in Q2, but higher advertising sales for special promotions such as Women in Focus, Graphic Novels and Middle Grade Mania in Q3 and Q4 will help to offset potential losses. A revenue-generating podcast series, The Shelf Care Interview, launched and sold two in Q1 with more booked throughout FY20. Booklist will test repackaging/reselling selected content by developing an exciting new patron-facing product to launch in early FY21, with financial support requested from the ALA Endowment Trustees. Booklist is also in discussions to acquire a product that is likely a strategic fit with Booklist and ALA. Resource Description and Access subscription renewal rate is running approximately 15% short of projection, accounting for a subscription revenue shortfall. The full release of the 3R updates should prompt increased renewals and new subscriptions in 2020, while regional plans will drive adoption, the necessary condition underpinning subscription activity. The departure of the marketing manager in Q1 has left the unit under capacity in operational areas but it expects to get back on track in Q2. ALA Graphics topline sales are 32% behind YTD budget, while royalty revenue is $2,000 better than budget. Expenses for the unit are more than 7% under budget. The unit has stopped offering discounted kits due to the expense of shipping posters separate from bookmarks, creating top line revenue that was not covered by the increased expenses. Efforts to turn sales around include increased personal outreach to customers likely to place larger orders, royalty revenue via the launch of Graphics new ancillary Gift Shop on in mid-November, and a promising line-up of products in the Spring catalog including new materials for Women’s History Month and Black History Month. eLearning Solutions sales are 34% below budget, partly related to timing, with the expectation of reducing or closing the gap in Q2. Some courses and workshops underperformed expectations, and the launch of RDA orientation workshops that would have been a major driver of Q1 revenue this quarter was delayed due to issues with the ALA eStore. American Libraries revenue was 11% less than YTD budget due to weaker gross advertising sales (specifically AL Direct and the Special Deliveries sponsored email program, which remains volatile year to year) and JobLIST classified ad sales, trailing due to a slower jobs market. Print advertising sales are on budget and has already tripled its FY20 revenue goal ($91,350 actuals through 8/31/20 against a budget of $30,000).Booklist and American Libraries have offered a joint advertising/sponsored-content proposal to Gale. By leveraging and combining resources, the two units together offer a compelling advertising option that gives advertisers wider reach than any competitors. This is part of Publishing’s ongoing effort to partner strategically across ALA to expand scope and scale, and leverage the unique competitive advantage of being part of ALA. Software introduced early in FY20 that will support efficiency and sales growth includes: Onixsuite to automate metadata functions for books; Salesforce software to help organize outreach to our largest current and prospective customers (limited use as part of ALA pilot); GovSpend cloud service that offers business intelligence and leads to help expand bulk sales to local, state, and federal government procurement offices. The continued consolidation of companies in the library technology industry is of long-term concern for advertising and sponsorship, particularly with the recent acquisitions of OverDrive and Innovative Interfaces, two growing American Libraries newer/returned advertisers.Expense-saving steps in Q1 included Booklist bringing cover design in-house and ending a long-term contractual agreement in favor of more cost-effective freelance work, and ALA Graphics testing a smaller print catalog (8 pages instead of 32), sent to fewer customers.For easy reference regarding FY19 percentages of revenue by Publishing unit:WASHINGTON OFFICETotal actual expenses for the Washington Office for the first quarter was around $688,000 compared to budgeted expenses for the period of $659,000. This results in $29,000 overspent. However, if personnel attrition of $14,000, embedded in the budget for the quarter, were to be excluded, the actual overspent amount would reduce to $15,500, attributable mostly to expenses relating to meetings of two advisory Committees held in October. Although expenses were higher than budgeted this quarter, the Washington Office expects to end the year on budget again. General and Administrative Operations Administrative expenses for the first quarter was $207,366, which is in line with expected and budgeted expenses of $205,046. The largest single variance is an underspent amount of $10,840 shown in the line item for minor equipment and software expenses. Because of the nature of this account, and its unpredictability, 75% of the budget was allocated to the first quarter, hence the positive variance. The variance in that line item offsets partially an overspent amount in total personnel expenses of around $8,600; when attrition is excluded from this amount, the actual variance is reduced to $4,600. The amount spent for business meetings was over the budgeted amount by $5,000. This variance is mostly the result of unanticipated costs relating to the Committee on Legislation (COL) meeting held in October. Public Policy and Advocacy Actual expenses for PP&A operations for the first quarter totaled $480,900 compared to a budgeted amount of $453,300. This resulted in a $27,000 deficit. Personnel cost is higher than budgeted by $4,900; if attrition is excluded from actual expense, the variance of salary and benefits turns into an underspent amount of around $10,000, which is consistent with two vacancies not yet filled. Temporary staff was hired to assist during this period and resulted in $11,500 unbudgeted for. Outside professional services totaled $88,300 compared to $84,000 budgeted for the quarter, resulting in a variance of $4,300. The first annual meeting of Policy Corp was also held in October. Total expenses relating to this meeting was $23,600 compared to $15,900 budgeted for that period, resulting an overspent amount of approximately $8,000. DIVISIONSAASLFY20 Budget YTDFY20 Actual YTDVarianceVariance %Total Revenues$1,242,388$1,418,864$176,47714%Total Expenses Before OH and Taxes$826,520$722,305$104,21613%Contribution Margin4415,867$696,560$280,69367%Tax$103$103-0-0%Overhead$157,639$339,542-$181,903-115%Total Expenses$984,262$1,061,949-$77,687-8%Net Revenue (Expense)$258,126$356,915$98,79038%FY20 is a national biennial conference year for AASL. The AASL 2019 National Conference held in Louisville from November 13-16, 2020 should be successful with a strong response from registrants. Publications sold well in the bookstore at conference. However, these numbers are preliminary with expenses and revenues yet to be finalized and not reflected in this report. . Total expenses appear higher than anticipated for November as some Overhead in the original budget as submitted was allocated to December when more comprehensive numbers should be available.ACRLACRLFY20 1st Q FY20 1st Q Var.FY18 1st Q Var. FY18 to FY20TotalActualBudgetActualRevenues$443,032 $523,264 ($80,233)$508,087 ($65,055)Expenses$732,041 $805,274 ($73,233)$735,478 ($3,437)NET($289,009)($282,010)($6,999)($227,391)($61,618)ACRL’s FY20 first quarter performance report from ALA looks a bit worse than it is due to missing classified ad revenue of $29,967 and webinar revenue of $6,750 (both of which should post in the December report). If we add this $36,717 to the total revenues, we have a total of $479,749 against the $523,264 budget with a variance of 8.3%.Helpfully, ACRL expenses are 9% below budget at $732,041 actual versus a budget of $805,274. This improves the actual net against the budgeted net to 10.5% with an actual net expense of -$252,292 against the budgeted net expense of -$282,010. However, as a reminder ACRL is actively investing its net asset balance in member programs and services and the ACRL Board approved a budget with a -$920,682 deficit for FY20.Revenue performance differed by project although revenues are largely down this first quarter, some due to timing and delay in projects. Membership continues to struggle; down 4% or $6,012 against budget of $152,821 and a loss of 300 members since November 2018. The environment is changing; in November 2019, a college-advising company scuttled its plans to release a list of 952 private, nonprofit colleges that it expects to run out of money and close in the coming years, according to a new financial-modeling tool and since September 1, we’ve noted 59 school closures as we update our list of academic institutions.Revenue from ACRL’s Trends & Stats products are 34% below budget, primarily due to timing issues. Some revenue will be made up but not all. The budget included revenues from a new facilities survey that has a delayed launch until 4th quarter; a revenue payment from the company managing the e-commerce is late and should show up in the December reports.Book sales are $25,000 below budget. Several new books anticipated to publish in Q1 were moved to January to publish as a set, so that revenue is now expected in Q2. Significant royalty payments arrived in December, so that line will see a notable increase in Q2, as well. While print sales continue to decline, royalties from ebooks are increasing. We hope to make budget by year end.ACRL’s Consulting business has been very busy this fall with gross revenues of $30,825 or 39% ahead of budget. With projects lined up we are expecting to make budget in gross revenues and will monito expenses.Advertising across products is mixed with the surprise of print ads exceeding budget and online ads missing budget projections. C&RL’s online ads were $105 or 2% below budget. C&RL News online product ads are about 14% or -$2,360 below budget. YTD revenues from print product ads in C&RL News are $33,906 or 66% or $13,453 more than the budgeted $20,453 and RBM product ads were $754 or 14% ahead of budget of $5,578 at $6,331. Choice Performance Comments FY20 Q1Choice financial results through November 2019 are summarized below: Choice overall financial performance through the first quarter is better than budget by some $56K, although much of this apparent gain is due to the timing of subscription payments. Subscriptions to Choice “core” products—Choice Reviews, Choice, and Reviews on Cards—track budget closely but show predictable year-over-year declines. ccAdvisor continues to disappoint, and the addition of a professional sales force (EBSCO) in the spring of this past year has yielded no appreciable growth in subscription revenue. But the first-quarter Resources for College Libraries subscription payment from ProQuest, budgeted for December, arrived in November, and this timely deposit contributed to a $46K positive variance to budget in subscriptions overall ($341K vs. $295K). Elsewhere in revenue, licensing (royalty) income is ahead of budget, again owing to timing, and a one-year level extension of our Books in Print/Syndetics license with ProQuest virtually assures no fall-off in licensing revenue. Thus, and with the usual cautions, we expect no difficulty meeting our revenue goal ($519K) for FY20. Advertising revenues continue to track last-year’s performance trends. Print “space” and digital banner advertising has entered a secular decline as our traditional advertising partners look to more direct and engaging forms of communication with their customers. To wit, ad revenue in Choice magazine is close to budget but well below the levels it had maintained throughout the decade until FY18, and interest in banner advertising in Choice Reviews and ccAdvisor is tepid at best. Offsetting this, our sponsored webinar program is off to another strong start, with $57K in gross receipts—before commissions and the split (15%) with ACRL—against a budgeted $40K year-to-date. Our relatively new podcast program, The Authority File, is similarly strong, posting 111% year-over-year gains through November. Overall, then, net revenue from all our advertising and sponsorship channels (webinars, white papers, newsletters, podcasts, and space and banner ads) totals $174K year-to-date, $8.5K below budget but $10.5K ahead of last year.On the expense side, we are exactly on budget (and only slightly behind prior year), with the only significant variances occurring in (1) software development costs (line 5430: $23K ahead), where we have not yet entered into an agreement with—and thus have not incurred any financial obligation to—a developer to rebuild , and (2) so-called miscellaneous expenses (line 5599: $26K behind), where the FY19 revenue split with The Charleston Company, for $27,744, was incorrectly left off the FY19 final close and thus has been charged to FY20. Overall, we are controlling spending well and adhering to budget.ALCTSOperating result through November 2019 (First Quarter FY20)YTD ActualYTD BudgetVarianceFY19 ActualFY20 BudgetRevenues$ 103,954$ 116,200$ 12,246$ 135,236$ 556,850Expenses$ 90,506 $ 108,174$ 17,669$ 89,472$ 572,887Net$ 13,448$ 8,026$ 5,422$ 45,764$ (16,037)Summary: Total revenue is 11% less than budget and approx. 30% below FY19. Total expense is 16% under budget and only $1k above FY19. Overall, first quarter performance is slightly better than budget, with a net of $13,448, but well below the FY19 net of $45,764. The variance is due primarily to the continuing education officer position being vacant until November. Education revenue will track more closely to budget as the fiscal year progresses, details below.Specific Budget Areas:ALA OverheadRevenue: N/A Expense: $7,303 actual/$8,439 budget/$10,566 FY19Administration/Operations Revenue: N/A Expense: Personnel expenses are $61,907 actual/$69,012 budget/$55,765 FY19. The FY20 actual vs budget difference is due to savings for the Continuing Education Officer position remaining unfilled until November. The difference between this year and last was due to salary/benefit savings for the director position, which was vacant the first two weeks of September and is filled on an interim basis; and for the deputy director position, which was vacant until mid-October of last year. Note: Overall administrative expense (personnel, staff travel, development, supplies and mail, etc.) is 7% under budget at $64,027 actual/$69,027 budget. Annual Conference Programs/EventsRevenue: $2,250 total FY20 budget Expense: $10,000 total FY20 budgetAnnual Conference Preconferences (for in FY20)Revenue: $19,000 total FY20 budget Expense: $15,470 total FY20 budgetBoard/Executive CommitteeRevenue: N/A Expense: $0 actual/$3,775 budget/$0 FY19. Donations/Services to Members (includes awards budget)Revenue: $110 actual/$5,750 budget/$685 FY19Expense: $132 actual/$738 budget/$1,020 FY19DuesRevenue: Dues revenue (personal, organizational, life, etc.) is 9% over budget at $48,314 actual/$44,175 budget, but below FY19 dues rev. of $50,809. This reflects the overall membership decline of 4.2% through the first quarter.Expense: N/AThe Exchange (online education event co-sponsored by LITA and LLAMA)Revenue: $0 actual/$61,300 budget/FY19 N/A Expense: $210 actual/$44,181 budget/FY19 N/ALibrary Resources & Technical Services (LRTS)Revenue: is 21% under budget at $4,363 actual/$5,525 budget/$4,475 FY19, with subscription revenue under budget by 12%.Expense: Production expense is on budget at $7,790 actual/$8,123/$7,209 FY19. Midwinter MeetingRevenue: $0 actual/$4,000 budget/$0 FY19 Expense: $0 actual/$11,100 budget/$0 FY19 Note: ALCTS fest will not be held this year in favor of a joint happy hour with LITA and LLAMA. Past funders will be encouraged to contribute to other ALCTS projects, like the Exchange. The budgeted net loss of $(7,100) will be not be realized, positively impacting year-end results. Preservation Week (April 21-27)Revenue: Donations are $120 actual/$3,000 budget/$1,000 FY19. Expense: $680 actual/$3,450 budget/$7 FY19. Note: Like last year at this point, both rev/exp are below budget but should catch up to budget later in the FY.PublicationsRevenue: $746 actual/$1,750 budget/$390 FY19Expense: $502 actual/$2,015 budget/$344 FY19Web CoursesRevenue: $34,821 actual/$29,750 budget/$47,331 FY19Expense: $11,736 actual/$13,766 budget/$14,582 FY19Note: Revenue is 17% over budget but below FY19, and expense is 15% under budget. Additional courses are launching in next two months.WebinarsRevenue: $15,481 actual/$26,250 budget/$30,545 FY19 Expense: $5,431 actual/$7,281 budget/$7,895 FY19Notes: Fewer first quarter webinars than budgeted due to vacant CE Officer position. Revenue should catch up to budget throughout the FY.ALSCYTD BudgetYTD ActualVariance Variance %Current BudgetTOTAL REVENUES269,785397,106127,32147%1,018,224Total Expenses before OH and tax346,538253,93292,60627%1,133,658Contribution Margin-76,753143,173219,926287%-115,434Overhead29,55347,323-17,770-60%99,693Tax707000210TOTAL EXPENSES-376,161-301,32574,83620%-1,233,562Net Revenue (Expense)-106,37695,780202,157190%Beginning Net Asset BalanceEnding Net Asset BalanceNet Revenue% Increase of NABNot yet reported, but based on FY19 close, it should be $3,280,803Not yet reported$95,780Overall, net revenue for the 1st quarter posted at $95,780 which was 190% ahead of budget. Total first quarter revenues posted 47% or $127,321 ahead of budget. Dues revenue is performing below budget by 7% or ($2,744). Physical seals sales are ahead budget by $9,763 and digital licensing fees are ahead of budget by $126,580 mainly due to discovered back payments collected in the amount of $137,310. Online CE revenue is right at budget. Children and Libraries subscriptions are tracking ahead of budget by $341, but ad revenue is currently under budget by 93% or ($3,810). Non-serial publications revenue is under budget by ($518). ECRR toolkit sales are tracking under budget by $2,031.On the expense side, total expenses, including overhead and tax were $301,325 or 20% better than budget. Administrative costs are under budget by $8,235 or 4%. Service to member expenses are under budget by $24,406 or 54%. Most areas are currently tracking under budget. Expenses for seals order fulfillment and overhead are currently under budget by $57,808 or 61%. Online CE expenses are over budget by ($757). Children and Libraries expenses are under budget by $1,784. Every Child Ready to Read expenses are just over budget by ($167).ASGCLAASGCLAActualBudgetedVarianceFY2018 NovTotal revenues$30,351$22,470$7,881 35%$17,870Total expenses$15,911$24,090$8,180 34%$10,953Net revenue$14,440($1,620)$16,061$6,918ASGCLA ended the quarter with a net revenue of $14,440. This was higher than anticipated in the budget (The FY 20 projected a slight net decrease) The FY20 first quarter income reflects the success of three online courses scheduled in September and October. RevenuesOverall, ASGCLA’s first quarter revenues were $7,881 more than budgeted. Dues is a primary source of revenue for ASGCLA. Actual dues revenue was close to target at only $30 less than budgeted. Revenues for Misc. sales, (online learning) were $9,634 above budget. This will even out over the year, as the income for the fall courses was received in September and October but was budgeted more evenly through the year. Income from spring courses is expected in March and April. Donations were budgeted modestly, but none were received through November. ExpensesASGCLA’s expenses were less than budgeted by the end of the first quarter. Expenditures totaled $15,911, of the $24,090 budgeted. The largest areas of expenditures are Payroll and Related Expenses and Outside Services.? These areas are close to, but slightly under budget.? The main area to watch is Meetings and Conferences for the impacts of online learning presenters, the Deaf Culture Forum at the Midwinter Meeting, and pre-conferences at Annual Conference. Other areas to watch are the Web and Online Learning (Publication) expenses, and? Operating expenses where the dollar amounts are small, but the variance percentages may be high.? LITALITA BudgetActualBudgetedVarianceFY2019 NovTotal revenues$36,2467$56,280($20,033) (-36%)$134,100*Total expenses$60,293$68,869($8,576) (12%)$153,644*Net revenue($24,046)($12,589)($11,457) (-91%)($19,543)* There was no LITA Forum in FY20, so compared to FY19 there are no registration revenue or expenses included in FY20 figures. The next Forum, planned jointly by LITA, ALCTS, and LLAMA, will take place on November 19-21, 2020, in FY21.SUMMARYWe’ve been rebuilding our online education program and have appointed a new member volunteer to be our eLearning Acquisitions Editor to help increase both the quality and quantity of our webinars and courses. Unfortunately, a delay in the search process meant we did not schedule fall sessions, but we expect to come back with a more robust program that includes double the number of sessions held in the past few years starting in February.End-of-Year FundraisingWe projected raising $2,000 for all of FY20, but we beat this goal and raised $2,075 by the end of December alone. This money will go towards future AvramCamp scholarships and Emerging Leader sponsorships.LLAMAOperating result through November 2019 (First Quarter FY20)YTD ActualYTD BudgetVarianceFY19 ActualFY20 BudgetRevenues$ 65,040$ 63,114$ 1,927$ 47,572$ 242,145Expenses$ 66,960 $ 67,313$ 353$ 61,479$ 280,165Net$ (1,920)$ (4,200)$ 2,280$ (13,907)$ (38,020)Summary: Total revenue is 3% over budget and 33% over FY19, primarily due to registration income from the Building Projects 101 conference in Columbus, OH, in October. Total expense is 1% under budget but 10% over FY19 expense, again due to the conference. The conference revenue masked much lower than expected webinar revenue, detailed below. Dues revenue is 8% over budget. Overall, the first quarter FY20 net operating result is $ (1,920), over $6k better than the budgeted loss of $ (4,200) and almost $16k better than first quarter FY19.Specific Budget Areas:ALA OverheadRevenue: N/A Expense: $2,146 actual/$3,800 budget/$706 FY19. Administration/Operations Revenue: N/A Expense: Personnel expenses are $51,245 actual/$50,315 budget/$57,088 FY19. Notes: Overall administrative expense (personnel, staff travel, supplies, mail/repro, etc.) is just over budget at $51,917 actual/$50,515 budget. Annual Conference Programs/Special EventsRevenue: $3,000 budgetExpense: $7,500 budgetAnnual Preconferences (4 in FY20)Revenue: $15,000 budgetExpense: $11,888 budgetBoard/Community SupportRevenue: N/A Expense: $119 actual/$0 budget/$0 FY19Building Projects 101; Oct. 17-20, Columbus, OHRevenue: $16,245 actual/$8,000 budget/(N/A in FY19)Expense: $11,815 actual/$7,450 budget/(N/A in FY19)Notes: This was the first regional educational event for LLAMA in many years, and it went very well thanks to the work of local organizers. Staff provided pre-event registration and support, but no onsite support. Organizers also did an excellent job of recruiting event sponsors, helping to offset expense. Some additional expense is expected, and a final financial report will be available in February. Organizers are considering offering the institute in another part of the country. DuesRevenue: Dues revenue (personal, organizational, life, etc.) is 8% over budget at $41,664 actual/$38,750 budget, but slightly below FY19 YTD of $42,445. This reflects the overall YTD membership loss of 1.2%.Expense: N/ALL&MRevenue: N/AExpense: $4,000 budgetProduct Development (budgeted each year using endowment interest revenue)Revenue: $10,195 budgetExpense: N/A, offsets overall division expensesWebinars and CoursesRevenue: $3,270 actual/$16,364 budget/$5,127 FY19Expense: $2,138 actual/$5,348 budget/$1,874 FY19Notes: Webinar revenue is 80% under budget for the first quarter. Eight new webinars are scheduled through April, and the next round of online courses will launch in spring. Revenue should catch up to budget in the third quarter but will be is closely monitored. PLANov 2019YTD BudgetNov 2019 YTD ActualNov 2019 VarianceNov 2019 Variance %Remaining Current BudgetTotal Revenues$246,828 $235,563$11,265-5%$423,290Total Expenses before OH and tax$664,886 $567,256$97,62915%$3,097,995Contribution Margin-$418,058-$331,693$86,36421%$1,385,057Overhead and Tax$20,839 $15,073$5,76628%$928,816Net Revenue (Expense)-$438,897-$346,766$92,13021%$458,242Beginning NABEnding NABNet RevenueIncrease NABTBDTBD-$346,766TBDOperating Budget: As of November 2019, PLA has an actual operating loss of $346,766, compared to a budgeted operating loss of $438,897. Revenue is generally on track, so this significant (21%) variance can be attributed to lower/slower expenses during the first 3 months of Fiscal Year 2020. The majority of PLA revenues and expenses are derived from the PLA 2020 conference; revenue for that conference will appear in March financials and much of the expense will appear post-conference as well. Operating Revenue: At the close of November 2019, PLA had budgeted for $246,828 in revenue and is under budget by about 5%. Dues revenue is on target. Publications, ad sales, and donations are lagging, however this is likely due to timing of revenue and these figures will end up closer to budget later in the fiscal year. In FY20, PLA has increased projected revenue for fee-based CE/PD activity (regional trainings on equity, space planning, and outcomes, as well as paid webinars). Collectively, these events are under budgeted revenue by about 10%, again likely due to timing of the activities. Operating Expenses: At the close of November 2019, PLA had budgeted to spend $664,886 and has spent $567,256, for a favorable variance of about 15%. This is almost entirely due to payments related to facilities and other expenses at the PLA 2020 Conference (February 2020) that were expected to occur by November 2019 but have not yet been issued.Grant Budgets: By the close of November 2019, PLA had spent $515,476 in grant funds compared to a budgeted amount of $549,297, for a modest (6%) positive variance.PLA Long-Term Investment: FY19 closing figures for PLA’s long-term investment are not yet available in Prophix for reporting.Overhead: As of November 2019, PLA was budgeted to provide a total of $44,877 in overhead and taxes to ALA and had paid $17,016. The variance is due to timing of registration fee income for paid CE events. In addition, ALA did not yet assess about $20,000 in overhead it is due, based on expenses paid in one grant project.RUSARUSA FY2020 NovActualBudgetedVarianceFY2019Total revenues$82,184$84,988($2,803) (-3%)$71,289Total expenses$88,936$98,807$9,872 10%$71,638Net revenue($6,751)($13,820)$7,069 51%($349)SUMMARYThrough November RUSA’s revenues were below budget by approximately 3%. Expenses however were positive to budget by roughly 10%. RUSA’s YTD Net Revenue is -$6,751, against a budget of -$13,820. Revenue: YTD revenue is $82,184 against a budget of $84,988. Membership Dues have generated YTD revenue of $38,411 which is slightly below budget of $42,100. On-line Learning is the next largest revenue generator for RUSA with YTD revenue of $31,785. Membership Dues and On-line Learning comprise approximately 85% of all current RUSA revenue YTD.Expenses: YTD expenses are $88,936 against a budget of $98,807. Expenses were positive to budget by roughly 10%. UNITED FOR LIBRARIES1st QFY20YTD BudgetYTD ActualVariance b/n YTD Budget and ActualVariance %TOTAL REVENUES67,50145,354-22,147-33%Total Expenses before OH and tax85,59296,247-10,654-12%Contribution Margin-18,091-50,893-32,801-181%Overhead/Taxes3,1661,2191,94762%TOTAL EXPENSES88,75997,466-8,707-10%Net Revenue (Expense)-21,258-52,111-30,854-145%Revenue: Actual revenue fell short of United budget by 33%:Group memberships, which includes Statewide Group Memberships, is 14% behind budget due to South Carolina not renewing. Due to the delays in launch of Adobe Connect and subsequent issues with integrating group members into ALA Connect, the state library felt the membership was not utilized enough by the libraries. The state library has opted to return to their prior level of Statewide Trustee Training, and the revenue will be realized in the second quarter of FY20.Revenue for ALA Store Sales (4108), Royalties (4421), and Exempt Revenue (4429) are 100% under budget. For both Store Sales and Royalties, this is due the budget spread, and for the FY21 budget, revenue will be spread semi-annually to align with revenue attribution from Publishing rather than quarterly. Revenues for 4429 are speaking engagement/honoraria, which can vary widely based on speaker requests received by staff and board members.Sales of Books for Babies kits are 44% under budget due to backorder of kit materials depleted by a large order received in the last month of FY19. Orders received in November will be reflected as revenue in the second quarter of FY20.Expenses: Actual expenses exceeded United budget by 10%:All three United staff members traveled to Chicago October 21-23 for the staff townhall meetings with the ALA Executive Director candidates. These expenses were not budgeted. Staff maximized these visits with meetings focused on revenue development and enhancing partnerships with other offices and divisions. United staff met with PPA staff in Washington, DC, in late September to discuss and collaborate on two projects focused on advocacy training and board training to be funded by the $200,000 bequest from Jack Neal that United received in spring 2019. These expenses, totaling approximately $1,500 will be covered by the bequest.Expenses for outside printing and purchased inventory were significantly higher than anticipated due to a $23,000 order of Books for Babies kits received in August 2019, which depleted supplies for the program requiring unanticipated expenses to restock kit materials for regular incoming orders. The large order was grant funded by Blue Cross of Idaho, and the program is expected to be funded – and expanded – in 2020 resulting in higher revenue for United. YALSAYTD BudgetYTD ActualVarianceVariance %TOTAL REVENUES166,000367,395201,396121%Total Expenses before OH and tax156,708283,784-127,076-81%Contribution Margin9,29283,61274,320800%Overhead/Taxes31,43352,052-20,619-66%TOTAL EXPENSES188,141335,836-147,695-79%Net Revenue (Expense)-22,14131,56053,701243%For the first quarter, YALSA ended positively with Net Revenue surpassing the budgeted amount by 243% according to the performance report. Note that this includes both operating revenues and an unbudgeted grant. Revenue: YALSA exceeded budget projections for registration fees by 284% and received revenue of $129,300 from grants which were not budgeted.Expenses: Actual expenses exceeded the YALSA budget by 79%, which covers the expenses for the grant work which was not added in the budget.mwg 1/9/20 final ................
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