SCRA Board of Trustees · 2019-06-27 · SCRA Statements of Activities 6 Months Ending December 31,...

SCRA Board of TrusteesAudit and Finance Committee

February 5, 2019

Agenda

10:30-10:35 Welcome and Call to Order (Bryant Barnes)Approval of Minutes (Bryant Barnes)September 20, 2018 (SCRA Audit and Finance Committee)

10:35-10:45 FY19 Interim Financials (John Sircy)10:45-10:50 Portfolio Review/Annual 403(b) Review (John Sircy)10:50-11:00 Industry Partnership Fund (Bob Quinn)11:00-11:10 Potential Incentives for Technology-based Companies (Bob Quinn)11:10-11:20 Consultant for Executive Director Performance Assessment (Bryant Barnes)11:20-11:45 Draft FY20-22 Strategic Plan (Bob Quinn/John Sircy)11:45-12:00 Preliminary FY20 Annual Operating Plan (Bob Quinn/John Sircy)12:00 Adjourn

Welcome and Call to OrderBryant Barnes

Approval of MinutesSeptember 20, 2018

SCRA Audit and Finance Committee

2/5/19 COMPANY PROPRIETARY © 2019 BY SCRA 4

FY19 Interim FinancialsJohn Sircy

Executive Summary

Balance Sheet Commentary• Sufficient liquidity• Fully-invested status


SCRA Balance SheetsJune 30, 2018 and December 31, 2018

Assets 12/31/2018 6/30/2018 $ Var. % Var.Unrestricted cash 504$ 254$ 250$ 98.4%Restricted cash - 2 (2) -100.0%Receivables & prepaids 1,035 6,241 (5,206) -83.4%Short-term investments 4,015 5,878 (1,863) -31.7% Total current assets 5,554 12,375 (6,821) -55.1%PP&E, net 33,088 33,945 (857) -2.5%Long-term investments 43,289 39,162 4,127 10.5% Total non-current assets 76,377 73,107 3,270 4.5% Total assets 81,931$ 85,482$ (3,551)$ -4.2%LiabilitiesShort-term liabilities 1,653$ 2,102$ (449)$ -21.4%Notes payable - buildings 13,826 14,292 (466) -3.3% Total liabilities 15,479 16,394 (915) -5.6%Net AssetsUnrestricted 45,653$ 44,845$ 808$ 1.8%Restricted 2,459 5,498 (3,039) -55.3%Net invest. In cap assets 18,340 18,745 (405) -2.2% Net position 66,452$ 69,088$ (2,636)$ -3.8% Tl liabs & net assets 81,931$ 85,482$ (3,551)$ -4.2%


Sheet1

Assets12/31/186/30/18$ Var.% Var.

Unrestricted cash$ 504$ 254$ 25098.4%

Restricted cash- 02(2)-100.0%

Receivables & prepaids1,0356,241(5,206)-83.4%

Short-term investments4,0155,878(1,863)-31.7%

Total current assets5,55412,375(6,821)-55.1%

PP&E, net33,08833,945(857)-2.5%

Long-term investments43,28939,1624,12710.5%

Total non-current assets76,37773,1073,2704.5%

Total assets$ 81,931$ 85,482$ (3,551)-4.2%

Liabilities

Short-term liabilities$ 1,653$ 2,102$ (449)-21.4%

Notes payable - buildings13,82614,292(466)-3.3%

Total liabilities15,47916,394(915)-5.6%

Net Assets

Unrestricted$ 45,653$ 44,845$ 8081.8%

Restricted 2,4595,498(3,039)-55.3%

Net invest. In cap assets18,34018,745(405)-2.2%

Net position$ 66,452$ 69,088$ (2,636)-3.8%

Tl liabs & net assets$ 81,931$ 85,482$ (3,551)-4.2%

SC Launch Balance SheetsJune 30, 2018 and December 31, 2018


Assets 12/31/2018 6/30/2018 $ Var. % Var.Unrestricted cash 310$ 759$ (449)$ -59.2%Receivables & prepaids 121 121 - 0.0%Short-term investments 1,188 1,514 (326) -21.5% Total current assets 1,619 2,394 (775) -32.4%Notes receivables 172 172 - 0.0%Long-term investments 7,138 6,400 738 11.5% Total non-current assets 7,310 6,572 738 11.2% Total assets 8,929$ 8,966$ (37)$ -0.4%LiabilitiesShort-term liabilities -$ -$ -$ 0.0% Total liabilities - - - 0.0%Net AssetsUnrestricted -$ -$ -$ 0.0%Restricted 8,929 8,966 (37) -0.4% Net position 8,929$ 8,966$ (37)$ -0.4% Tl liabs & net assets 8,929$ 8,966$ (37)$ -0.4%

Sheet1

Assets12/31/186/30/18$ Var.% Var.

Unrestricted cash$ 310$ 759$ (449)-59.2%

Receivables & prepaids121121- 00.0%

Short-term investments1,1881,514(326)-21.5%

Total current assets1,6192,394(775)-32.4%

Notes receivables172172- 00.0%

Long-term investments7,1386,40073811.5%

Total non-current assets7,3106,57273811.2%

Total assets$ 8,929$ 8,966$ (37)-0.4%

Liabilities

Short-term liabilities$ - 0$ - 0$ - 00.0%

Total liabilities- 0- 0- 00.0%

Net Assets

Unrestricted$ - 0$ - 0$ - 00.0%

Restricted 8,9298,966(37)-0.4%

Net position$ 8,929$ 8,966$ (37)-0.4%

Tl liabs & net assets$ 8,929$ 8,966$ (37)-0.4%

Executive Summary

Statement of Activities Commentary• Favorable operating performance

• Revenues• Expenses

• Favorable non-operating results• Interest income• Unrealized gains in portfolio


SCRA Statements of Activities 6 Months Ending December 31, 2018

In 000's Actual YTD Plan $ Var. % Var.Annual

PlanOperating revenueContract 265$ 256$ 9$ 3.5% 511$ Lease 1,894 1,861 33 1.8% 3,722 Contribution - - - 0.0% 6,000 Other 87 76 11 14.5% 76 Total operating revenue 2,246$ 2,193$ 53$ 2.4% 10,309$ Operating expenseContract - direct 28$ 8$ 20$ 250.0% 15$ Facilities 744 733 11 1.5% 1,466 Grants and program expenses 839 835 4 0.5% 3,625 Salaries and benefits 2,292 2,525 (233) -9.2% 4,901 General and administrative 246 307 (61) -19.9% 614 Professional services 216 327 (111) -33.9% 618 Building infrastructure expense 907 972 (65) -6.7% 1,944 Other 368 443 (75) -16.9% 887 Total operating expense 5,640$ 6,150$ (510)$ -8.3% 14,070$ Net operating surplus (deficit) (3,394)$ (3,957)$ 563$ -14.2% (3,761)$ Non-operating activitiesTransfers to SC Launch!, Inc. (450)$ (450)$ -$ 0.0% (1,800)$ Interest income 708 360 348 96.7% 720 Unrealized gain (loss) on investments 500 (50) 550 NMF (100) Non-operating activities 758 (140) 898 -641.4% (1,180) Net deficit (2,636)$ (4,097)$ 1,461$ 35.7% (4,941)$


Sheet1

In 000'sActualYTD Plan$ Var.% Var.Annual Plan

Operating revenue

Contract$ 265$ 256$ 93.5%$ 511

Lease1,8941,861331.8%3,722

Contribution- 0- 0- 00.0%6,000

Other87761114.5%76

Total operating revenue$ 2,246$ 2,193$ 532.4%$ 10,309

Operating expense

Contract - direct$ 28$ 8$ 20250.0%$ 15

Facilities744733111.5%1,466

Grants and program expenses83983540.5%3,625

Salaries and benefits2,2922,525(233)-9.2%4,901

General and administrative246307(61)-19.9%614

Professional services216327(111)-33.9%618

Building infrastructure expense907972(65)-6.7%1,944

Other368443(75)-16.9%887

Total operating expense$ 5,640$ 6,150$ (510)-8.3%$ 14,070

Net operating surplus (deficit)$ (3,394)$ (3,957)$ 563-14.2%$ (3,761)

Non-operating activities

Transfers to SC Launch!, Inc.$ (450)$ (450)$ - 00.0%$ (1,800)

Interest income70836034896.7%720

Unrealized gain (loss) on investments500(50)550NMF(100)

Non-operating activities758(140)898-641.4%(1,180)

Net deficit$ (2,636)$ (4,097)$ 1,46135.7%$ (4,941)

SCRA Statements of Activities FY19 Forecast vs. AOP


In 000's Forecast AOP $ Var. % Var.Operating revenueContract 525$ 511$ 14$ 2.7%Lease 3,900 3,722 178 4.8%Contribution 6,000 6,000 - 0.0%Other - ATI earnout 4,087 76 4,011 5277.6% Total operating revenue 14,512$ 10,309$ 4,203$ 40.8%Operating expenseContract - direct 60$ 15$ 45$ 300.0%Facilities 1,540 1,466 74 5.0%Grants and program expenses 3,625 3,625 - 0.0%Salaries and benefits 4,800 4,901 (101) -2.1%General and administrative 600 614 (14) -2.3%Professional services 675 618 57 9.2%Building infrastructure expense 1,800 1,944 (144) -7.4%Other 900 887 13 1.5% Total operating expense 14,000$ 14,070$ (70)$ -0.5% Net operating surplus (deficit) 512$ (3,761)$ 4,273$ -113.6%Non-operating activitiesTransfers to SC Launch!, Inc. (1,800)$ (1,800)$ -$ 0.0%Interest income 1,105 720 385 53.5%Unrealized gain (loss) on investments (185) (100) (85) NMF Non-operating activities (880) (1,180) 300 -25.4%Net deficit (368)$ (4,941)$ 4,573$ 92.6%

Sheet1

In 000'sForecastAOP$ Var.% Var.

Operating revenue

Contract$ 525$ 511$ 142.7%

Lease3,9003,7221784.8%

Contribution6,0006,000- 00.0%

Other - ATI earnout4,087764,0115277.6%

Total operating revenue$ 14,512$ 10,309$ 4,20340.8%

Operating expense

Contract - direct$ 60$ 15$ 45300.0%

Facilities1,5401,466745.0%

Grants and program expenses3,6253,625- 00.0%

Salaries and benefits4,8004,901(101)-2.1%

General and administrative600614(14)-2.3%

Professional services675618579.2%

Building infrastructure expense1,8001,944(144)-7.4%

Other900887131.5%

Total operating expense$ 14,000$ 14,070$ (70)-0.5%

Net operating surplus (deficit)$ 512$ (3,761)$ 4,273-113.6%


Transfers to SC Launch!, Inc.$ (1,800)$ (1,800)$ - 00.0%

Interest income1,10572038553.5%

Unrealized gain (loss) on investments(185)(100)(85)NMF

Non-operating activities(880)(1,180)300-25.4%

Net deficit$ (368)$ (4,941)$ 4,57392.6%

SC Launch Statements of Activities 6 Months Ending December 31, 2018


In 000's Actual YTD Plan $ Var. % Var.Annual

PlanOperating revenueInvestment returns 305$ 114$ 191$ 167.5% 228$ Contribution from SCRA 450 450 - 0.0% 1,800 Total operating revenue 755$ 564$ 191$ 33.9% 2,028$ Operating expenseInvestments 750$ 750$ -$ 0.0% 3,000$ General and administrative - - - 0.0% 14 Professional services 56 65 (9) -13.8% 133 Total operating expense 806$ 815$ (9)$ -1.1% 3,147$ Net operating surplus (deficit) (51)$ (251)$ 200$ -79.7% (1,119)$ Non-operating activitiesUnrealized gain (loss) on investments (13) - (13) -100.0% - Non-operating activities (13) - (13) -100.0% - Net deficit (64)$ (251)$ 187$ 74.5% (1,119)$

Sheet1

In 000'sActualYTD Plan$ Var.% Var.Annual Plan

Operating revenue

Investment returns$ 305$ 114$ 191167.5%$ 228

Contribution from SCRA450450- 00.0%1,800

Total operating revenue$ 755$ 564$ 19133.9%$ 2,028

Operating expense

Investments$ 750$ 750$ - 00.0%$ 3,000

General and administrative- 0- 0- 00.0%14

Professional services5665(9)-13.8%133

Total operating expense$ 806$ 815$ (9)-1.1%$ 3,147

Net operating surplus (deficit)$ (51)$ (251)$ 200-79.7%$ (1,119)


Unrealized gain (loss) on investments(13)- 0(13)-100.0%- 0

Non-operating activities(13)- 0(13)-100.0%- 0

Net deficit$ (64)$ (251)$ 18774.5%$ (1,119)

SC Launch Statements of Activities FY19 Forecast vs. AOP


In 000'sFY 2019

FC AOP $ Var. % Var.Operating revenueInvestment returns 400$ 228$ 172$ 75.4%Contribution from SCRA 1,800 1,800 - 0.0% Total operating revenue 2,200$ 2,028$ 172$ 8.5%Operating expenseInvestments 3,000$ 3,000$ -$ 0.0%General and administrative 14 14 - 0.0%Professional services 150 133 17 12.8% Total operating expense 3,164$ 3,147$ 17$ 0.5% Net operating surplus (deficit) (964)$ (1,119)$ 155$ -13.9%Non-operating activitiesUnrealized gain (loss) on investments . - - -100.0% Non-operating activities - - - -100.0%Net deficit (964)$ (1,119)$ 155$ 13.9%

Sheet1

In 000'sFY 2019 FCAOP$ Var.% Var.

Operating revenue

Investment returns$ 400$ 228$ 17275.4%

Contribution from SCRA1,8001,800- 00.0%

Total operating revenue$ 2,200$ 2,028$ 1728.5%

Operating expense

Investments$ 3,000$ 3,000$ - 00.0%

General and administrative1414- 00.0%

Professional services1501331712.8%

Total operating expense$ 3,164$ 3,147$ 170.5%

Net operating surplus (deficit)$ (964)$ (1,119)$ 155-13.9%


Unrealized gain (loss) on investments.- 0- 0-100.0%

Non-operating activities- 0- 0- 0-100.0%

Net deficit$ (964)$ (1,119)$ 15513.9%

Portfolio Review/Annual403(b) Review

John Sircy

Market Summary

Yield Curve Forecast• Yield curve inverted

• 5-year yields below short-term rates• Average inversion period: 7 months

• Forecast• Bull market cycle for bonds• 5-year Treasury yields: 2% range


SCRA Investment Portfolio Summary


000s % of Portfolio Interest RateMoney market 4,015$ 8.5% 2.18%Bonds 43,289 91.5% 2.04% Totals 47,304$ 100.0% 2.05%

Duration of Bonds 4.87 years

Maturity by Fiscal Year 000s Interest Rate % of Bond Port.2019 -$ 0.00% 0.0%2020 - 0.00% 0.0%2021 7,256 1.62% 16.8%2022 10,277 1.89% 23.7%2023 4,631 2.00% 10.7%2024 2,508 2.13% 5.8%2025 5,778 2.63% 13.3%

After 2025 12,839 2.14% 29.7%Total Bonds 43,289$ 2.04% 100.0%

December 31, 2018

Sheet1

December 31, 2018

000s% of PortfolioInterest Rate

Money market$ 4,0158.5%2.18%

Bonds43,28991.5%2.04%

Totals$ 47,304100.0%2.05%

Duration of Bonds4.87years

Maturity by Fiscal Year000sInterest Rate% of Bond Port.

2019$ - 00.00%0.0%

2020- 00.00%0.0%

20217,2561.62%16.8%

202210,2771.89%23.7%

20234,6312.00%10.7%

20242,5082.13%5.8%

20255,7782.63%13.3%

After 202512,8392.14%29.7%

Total Bonds$ 43,2892.04%100.0%

2/5/19 17

SC Launch Investment Portfolio Summary

Type 000s % of Portfolio YieldCorporate bonds 501 11.8% 3.68%Government bonds 2,484 58.6% 1.59%Equity 1,254 29.6% 6.06% Totals 4,239$ 100.0% 3.16%

Bond Maturities 000s Yield % of Bond Port.Under 1 year 744$ 1.01% 24.9%1 to 5 years 1,987 2.05% 66.6%Over 5 years 254 3.81% 8.5%

Total Fixed income 2,985$ 1.94% 100.0%

December 31, 2018

COMPANY PROPRIETARY © 2019 BY SCRA

Sheet1

December 31, 2018

Type000s% of PortfolioYield

Corporate bonds50111.8%3.68%

Government bonds2,48458.6%1.59%

Equity1,25429.6%6.06%

Totals$ 4,239100.0%3.16%

Bond Maturities000sYield% of Bond Port.

Under 1 year$ 7441.01%24.9%

1 to 5 years1,9872.05%66.6%

Over 5 years2543.81%8.5%

Total Fixed income$ 2,9851.94%100.0%

Annual 403(b) Review

Annual 403(b) Review


Description MetricParticipation as % of Eligible Employees 89%

Total Assets (as of 9/30/2018) $8,670,000Asset Class % of TotalUS Equities 57%Stable Fund 17%

InternationalTarget Date Funds

8%7%

Fixed IncomeTechnology Fund

7%4%

Industry Partnership FundBob Quinn

Legislative Update (as of 2/4/19)• S.309 in Senate

• Introduced by Sen. Setzler• Increases annual limit from $6M to $12M• Phased in over two years

• Status: • Probable third and final reading in Senate on February 5• “Sunshine” amendment introduced by Sens. Martin and Davis

• H.3595 in House• Introduced by Rep. Elliott

• Increases annual limit from $6M to $9M• Phased in over three years

• Status:• Probable third and final reading in House on February 5


Fund Contribution Update (as of 2/4/19)• $2.3M committed to date

• Lagging contributions due to uncertainty related to proposed IRS regulation restricting federal deduction

• Regulation not relevant to companies if deducted as business expense

• IRS still considering possible changes to proposed regulation• Concerted effort to approach companies

• Involving SCRA/SC Launch Boards, SCRA staff and others• Opportunity for SCRA to expand industry engagement• Early industry engagements bearing fruit


Potential Tax Incentives for Technology-based Companies

Bob Quinn

Status of Effort


• Developed White Papers• Small Business Startup Tax Credit

• Based on NC bill• Qualified STEM-related Jobs Tax Refund

• Based on FL laws• Life Sciences Tax Incentives

• Based on MA laws• Receiving support of State Chamber• Working with Department of Commerce and others• Identifying champions in General Assembly for introduction of

bills next year

Consultant for Executive Director Performance Assessment

Bryant Barnes

Recommended Consultant and Scope


• MicroBurst Learning• Small, Columbia-based firm with strong track record • Used repeatedly by Don Herriott with consistently positive results

• Scope of Work• Charter small SCRA Board Member Evaluation Committee • Develop potential qualitative competencies and criteria• Finalize assessment process, evaluation instrument and Executive

Director self-assessment instrument • Interview five Board members and five staff• Review performance evaluation (including recommended salary

increase and bonus) with Evaluation Committee • Develop SOP for future assessments

Draft FY20-22 Strategic PlanBob Quinn/John Sircy

FY20-22 Strategic Plan Executive Summary

Key Strategies (unchanged)1. Continue Successful Execution of SCRA-Academia Strategic

Collaboration Agreement2. Optimize Mission-Driven Revenue to Ensure Sustainability3. Develop and Execute Multi-Year Legislative Strategy4. Increase Access to Capital for Startup and Growth Companies5. Drive Operational Excellence6. Recruit, Grow and Retain Tech-Based Companies


FY20-22 Strategic Plan


Revenue Enhancement Scoreboard

Reference # Description 2020 2021 20222.1.1 SCL Investment performance 177,000$ 177,000$ 177,000$ 2.1.2 Consulting revenue - VBI 20,000 40,000 60,000 2.1.3 SCL Benefactors 100,000 100,000 100,000 2.2 Services to Industry 20,000 40,000 60,000

2.3.1 Lease revenue - legislative chg - - 200,000 2.3.2 Lease revenue - 22 West Edge 182,000 279,000 2.4 Bond yields - legislative chg - 200,000 200,000

2.5.1 Incoming Grants - 100,000 40,000 4.4 Crowdfunding - - 60,000 5.2 Investment management 10,000 10,000 10,000 5.4 Cost saves 105,000 105,000 105,000

Totals 432,000$ 954,000$ 1,291,000$

$ Amount - Net Impact

Sheet1

SCRA 2020-2022 Strategic Plan



Reference #Description202020212022Thereafter annuallyStatusRationale'

2.1.1SCL Investment performance177,000177,000177,000177,000Not includedHedge vs. SCL Organic portfolio performance

2.1.2Consulting revenue - VBI20,00040,00060,00080,000IncludedRepresentative of new revenue streams

2.1.3SCL Benefactors100,000100,000100,000100,000Not includedConservatism

2.2Services to Industry20,00040,00060,00080,000IncludedRepresentative of new revenue streams

2.3.1Lease revenue - legislative chg- 0- 0200,000200,000IncludedRepresents impact of Legislative strategy

2.3.2Lease revenue - 22 West Edge147,000147,000147,000Already included in core analysis

2.4Bond yields - legislative chg- 0200,000200,000200,000Already included in core analysis

2.5.1Incoming Grants- 0100,00040,00040,000IncludedRepresentative of new revenue streams

4.1Establish VC Fund(2,500,000)(2,500,000)(2,500,000)VariesDepicted in Cases 2 & 3Bold new initiative

4.4Crowdfunding- 0- 060,00060,000IncludedRepresentative of new revenue streams

5.2Investment management10,00010,00010,00010,000Already included in core analysis

5.4Cost saves105,000105,000105,000105,000Already included in core analysis

6.1VBISee 2.1.2 above

Total revenue enhancements included in Cases 1-3========================>40,000180,000420,000460,000

Sheet1 (2)

SCRA 2020-2022 Strategic Plan



Reference #Description202020212022Thereafter annuallyStatusRationale'

2.1.1SCL Investment performance$ 177,000$ 177,000$ 177,000$ 177,000Not includedHedge vs. SCL Organic portfolio performance

2.1.2Consulting revenue - VBI20,00040,00060,00080,000IncludedRepresentative of new revenue streams

2.1.3SCL Benefactors100,000100,000100,000100,000Not includedConservatism

2.2Services to Industry20,00040,00060,00080,000IncludedRepresentative of new revenue streams

2.3.1Lease revenue - legislative chg- 0- 0200,000200,000IncludedRepresents impact of Legislative strategy

2.3.2Lease revenue - 22 West Edge182,000279,000147,000Already included in core analysis

2.4Bond yields - legislative chg- 0200,000200,000200,000Already included in core analysis

2.5.1Incoming Grants- 0100,00040,00040,000IncludedRepresentative of new revenue streams

4.4Crowdfunding- 0- 060,00060,000IncludedRepresentative of new revenue streams

5.2Investment management10,00010,00010,00010,000Already included in core analysis

5.4Cost saves105,000105,000105,000105,000Already included in core analysis

Totals$ 432,000$ 954,000$ 1,291,000$ 1,199,000

Total revenue enhancements included in Cases 1-3========================>40,000180,000420,000460,000

Financial• Annual change in net assets vs. annual operating

plans• Annual returns on SC Launch Inc. organic portfolio• % of total revenue and $ value of revenue coming

from sources other than Industry Partnership Fund, Leases and Returns on Reserves

Internal Processes• All-in time (in business days) required to fund a

grant/investment• Annual growth rate of general and administrative

expense and professional services expense• Time (in months) required to roll out new

initiatives (e.g., crowdfunding, fee-based services, virtual business incubators)

Customer• South Carolina-based jobs created• Follow-on funding for SC Launch Client Companies• Annual $ amount of grants and investments• Number of grant recipients that receive SC Launch,

Inc. investments• Overall stakeholder satisfaction (based on surveys)• Number of formal relationships between/among

industry, academia and early-stage companies

People Development• Number of internal promotions/role

enhancements• Annual “Best Places to Work in South Carolina”

ranking


FY20-22 Strategic Plan Executive Balanced Scorecard - 4 Perspectives

Long-term Cash Flow Forecast Assumptions (Strategic Plan-driven changes in red)• IPF caps: FY 2019 - $6M; FY 2020 - $9M; FY 2021 and beyond $12M• ATI earnout of $15M: $4M in FY 2019 – 2020; $7M in FY 2021• Bond reinvestment rate: 3.90%• Lease revenue:

• 22 WestEdge occupancy: FY 2021: 50%; FY 2022: 75%; FY 2023 and beyond: 95%

• Other: Annual increase of 3% • Program expenses: Increase with IPF increase• SC Launch impact: Funding ramping up to $4.5M annually; return on portfolio 3.0%• Capital expenditures:

• 22 WestEdge: $5.955M in FY 2020-2022• Other: $500K plus 1% growth annually

• Cash operating expense: 1.5% annual increase• Other revenue: Ramping up to $460K annually by 2023


SCRA Long-term Cash Flow Forecast

(40,000)

(30,000)

(20,000)

(10,000)

0

10,000

20,000

30,000

40,000

50,000

60,000

SCL Returns Lease Revenue IPFProgram/Other Expense Strategic Plan Reserves Original Case Reserves


Preliminary FY20 AnnualOperating PlanBob Quinn/John Sircy

Preliminary FY20 AOP

Two Scenarios:$6M and $9M IPF


FY20 AOP Balance Sheet$6M IPF Base Case

Assets 6/30/2020 6/30/2019 6/30/2018Unrestricted cash 250$ 250$ 254$ Restricted cash - - 2 Receivables & prepaids 3,000 3,000 6,241 Short-term investments 1,952 4,519 5,050 Total current assets 5,202 7,769 11,547 PP&E, net 35,000 33,000 33,944 Long-term investments 42,500 43,425 39,991 Total non-current assets 77,500 76,425 73,935 Total assets 82,702$ 84,194$ 85,482$ LiabilitiesShort-term liabilities 1,200$ 1,200$ 1,195$ Notes payable - buildings 13,335 14,275 15,200 Total liabilities 14,535 15,475 16,395 Net AssetsUnrestricted 41,002$ 44,494$ 44,845$ Restricted 5,500 5,500 5,498 Net invest. In cap assets 21,665 18,725 18,744 Net position 68,167$ 68,719$ 69,087$ Tl liabs & net assets 82,702$ 84,194$ 85,482$


Sheet1

Assets6/30/206/30/196/30/18

Unrestricted cash$ 250$ 250$ 254

Restricted cash- 0- 02

Receivables & prepaids3,0003,0006,241

Short-term investments1,9524,5195,050

Total current assets5,2027,76911,547

PP&E, net35,00033,00033,944

Long-term investments42,50043,42539,991

Total non-current assets77,50076,42573,935

Total assets$ 82,702$ 84,194$ 85,482

Liabilities

Short-term liabilities$ 1,200$ 1,200$ 1,195

Notes payable - buildings13,33514,27515,200

Total liabilities14,53515,47516,395

Net Assets

Unrestricted$ 41,002$ 44,494$ 44,845

Restricted 5,5005,5005,498

Net invest. In cap assets21,66518,72518,744

Net position$ 68,167$ 68,719$ 69,087

Tl liabs & net assets$ 82,702$ 84,194$ 85,482

Preliminary FY20 AOP Balance Sheet $9M IPF Changes vs. Base Case


Assets 6/30/2020Unrestricted cash -$ Restricted cash - Receivables & prepaids - Short-term investments 1,456 Total current assets 1,456 PP&E, net - Long-term investments - Total non-current assets - Total assets 1,456$ LiabilitiesShort-term liabilities -$ Notes payable - buildings - Total liabilities - Net AssetsUnrestricted 1,456$ Restricted - Net invest. In cap assets - Net position 1,456$ Tl liabs & net assets 1,456$

Sheet1

Assets6/30/20

Unrestricted cash$ - 0

Restricted cash- 0

Receivables & prepaids- 0

Short-term investments1,456

Total current assets1,456

PP&E, net- 0

Long-term investments- 0

Total non-current assets- 0

Total assets$ 1,456

Liabilities

Short-term liabilities$ - 0

Notes payable - buildings- 0

Total liabilities- 0

Net Assets

Unrestricted$ 1,456

Restricted - 0

Net invest. In cap assets- 0

Net position$ 1,456

Tl liabs & net assets$ 1,456

Preliminary FY20 AOP

Two Scenarios• $6M and $9M IPF• Impact

• Grants and program expenses• Personnel expenses• Transfers to SC Launch!, Inc.


Preliminary FY20 AOP Statement of Activities$6 million IPF Base Case

In 000's 2020 AOP 2019 FC $ Var. % Var. 2019 AOPOperating revenueContract 600$ 525$ 75$ 14.3% 511$ Lease 4,233 3,900 333 8.5% 3,722 Contribution 6,000 6,000 - 0.0% 6,000 Other - ATI earnout 4,076 4,087 (11) -0.3% 76 Total operating revenue 14,909$ 14,512$ 397$ 2.7% 10,309$ Operating expenseContract - direct 60$ 60$ -$ 0.0% 15$ Facilities 1,580 1,540 40 2.6% 1,466 Grants and program expenses 3,650 3,625 25 0.7% 3,625 Salaries and benefits 4,920 4,800 120 2.5% 4,901 General and administrative 615 600 15 2.5% 614 Professional services 692 675 17 2.5% 618 Building infrastructure expense 2,190 1,800 390 21.7% 1,944 Other 946 900 46 5.1% 887 Total operating expense 14,653$ 14,000$ 653$ 4.7% 14,070$ Net operating deficit 256$ 512$ (256)$ -50.0% (3,761)$ Non-operating activitiesTransfers to SC Launch!, Inc. (1,800)$ (1,800)$ -$ 0.0% (1,800)$ Interest income 992 1,105 (113) -10.2% 720 Unrealized gain (loss) on investments - (185) 185 -100.0% (100) Non-operating activities (808) (880) 72 -8.2% (1,180) Net surplus (deficit) (552)$ (368)$ (184)$ -50.0% (4,941)$


Sheet1

In 000's2020 AOP2019 FC$ Var.% Var.2019 AOP

Operating revenue

Contract$ 600$ 525$ 7514.3%$ 511

Lease4,2333,9003338.5%3,722

Contribution6,0006,000- 00.0%6,000

Other - ATI earnout4,0764,087(11)-0.3%76

Total operating revenue$ 14,909$ 14,512$ 3972.7%$ 10,309

Operating expense

Contract - direct$ 60$ 60$ - 00.0%$ 15

Facilities1,5801,540402.6%1,466

Grants and program expenses3,6503,625250.7%3,625

Salaries and benefits4,9204,8001202.5%4,901

General and administrative615600152.5%614

Professional services692675172.5%618

Building infrastructure expense2,1901,80039021.7%1,944

Other946900465.1%887

Total operating expense$ 14,653$ 14,000$ 6534.7%$ 14,070

Net operating deficit$ 256$ 512$ (256)-50.0%$ (3,761)


Transfers to SC Launch!, Inc.$ (1,800)$ (1,800)$ - 00.0%$ (1,800)

Interest income9921,105(113)-10.2%720

Unrealized gain (loss) on investments- 0(185)185-100.0%(100)

Non-operating activities(808)(880)72-8.2%(1,180)

Net surplus (deficit)$ (552)$ (368)$ (184)-50.0%$ (4,941)

Preliminary FY20 AOP Statement of ActivitiesComparison of the Two Scenarios – Affected Line Items


In 000's $9M IPF Base Case ChangeContributions 9,000$ 6,000$ 3,000$ Grants and program expenses (4,275) (3,650) (625) Salaries and benefits (5,339) (4,920) (419) Transfers to SC Launch!, Inc. (2,300) (1,800) (500) Totals (2,914)$ (4,370)$ 1,456$

Sheet1

In 000's$9M IPF Base CaseChange

Contributions$ 9,000$ 6,000$ 3,000

Grants and program expenses(4,275)(3,650)(625)

Salaries and benefits(5,339)(4,920)(419)

Transfers to SC Launch!, Inc.(2,300)(1,800)(500)

Totals$ (2,914)$ (4,370)$ 1,456

Adjourn

SCRA Board of Trustees�Audit and Finance Committee�AgendaWelcome and Call to Order�Bryant BarnesApproval of MinutesFY19 Interim Financials�John SircyExecutive SummarySCRA Balance Sheets�June 30, 2018 and December 31, 2018SC Launch Balance Sheets�June 30, 2018 and December 31, 2018Executive SummarySCRA Statements of Activities �6 Months Ending December 31, 2018SCRA Statements of Activities �FY19 Forecast vs. AOPSC Launch Statements of Activities �6 Months Ending December 31, 2018SC Launch Statements of Activities �FY19 Forecast vs. AOPPortfolio Review/Annual�403(b) Review�John SircyMarket SummarySCRA Investment Portfolio SummarySC Launch Investment Portfolio SummarySlide Number 18Annual 403(b) ReviewIndustry Partnership Fund�Bob QuinnLegislative Update (as of 2/4/19)Fund Contribution Update (as of 2/4/19)Potential Tax Incentives for Technology-based Companies�Bob QuinnStatus of EffortConsultant for Executive Director Performance Assessment�Bryant BarnesRecommended Consultant and ScopeDraft FY20-22 Strategic Plan�Bob Quinn/John SircyFY20-22 Strategic Plan Executive SummaryFY20-22 Strategic PlanFY20-22 Strategic Plan Executive Balanced Scorecard - 4 PerspectivesLong-term Cash Flow Forecast Assumptions (Strategic Plan-driven changes in red)SCRA Long-term Cash Flow Forecast Preliminary FY20 Annual� Operating Plan�Bob Quinn/John SircyPreliminary FY20 AOPFY20 AOP Balance Sheet�$6M IPF Base CasePreliminary FY20 AOP Balance Sheet �$9M IPF Changes vs. Base CasePreliminary FY20 AOPPreliminary FY20 AOP Statement of Activities�$6 million IPF Base CasePreliminary FY20 AOP Statement of Activities�Comparison of the Two Scenarios – Affected Line ItemsSlide Number 40

SCRA Board of Trustees · 2019-06-27 · SCRA Statements of Activities 6 Months Ending December 31,...

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