Treasurer’s Report to CouncilTreasurer’s Report to Council(Annual Estimate of Income & Budgetary Ceiling)

Presented By – Rod HersbergerMonday June 28, 2010Washington, DC

2009-10 ALA CD #13.1

(2010 Annual Conference)

Areas Supported by the General FundAreas Supported by the General Fund

Chapter Relations OfficeChapter Relations Office Development OfficeDevelopment Office International Relations International Relations

OfficeOffice LibraryLibrary Office of AccreditationOffice of Accreditation Office for DiversityOffice for Diversity Office of Human Resource Office of Human Resource

Development & Development & RecruitmentRecruitment

Office for information Office for information Technology PolicyTechnology Policy

Office for Intellectual Office for Intellectual FreedomFreedom

Office for Library AdvocacyOffice for Library Advocacy Office for Literacy & Office for Literacy &

Outreach ServicesOutreach Services Office for Research & Office for Research &

StatisticsStatistics Office of the ALA Office of the ALA

GovernanceGovernance Office of Government Office of Government

RelationsRelations Public Information OfficePublic Information Office Public Programs OfficePublic Programs Office Washington OfficeWashington Office

Administrative Services Supported Administrative Services Supported by the General Fund by the General Fund

Human ResourcesHuman Resources Accounting and FinanceAccounting and Finance Building Operations and Building Operations and

Support StaffSupport Staff ITTSITTS Member and Customer Member and Customer

servicesservices

General Fund Revenue SourcesGeneral Fund Revenue Sources

*Budget

**Year End Projection

***Requested

2008 2009 2010* 2011***

Dues $5,703,011 $5,850,641 $6,078.400 $6,287,800

Book Sales 3,247,965 2,949,570 3,395,825 3,866,152

Subscriptions 2,922,989 2,800,834 2,763,884 2,434,053

Advertising 4,259,059 3,477,703 3,814,296 3,511,532

Meet/Conf 7,311,577 7,195,653 7,570,800 6,786,950

Prod & Prom 2,025,389 1,628,552 1,983,929 1,491,982

Miscellaneous 2,556,742 3,064,804 2,487,371 2,444,014

Total $28,026,732 $26,967,757 $28,094,505 $26,822,483

$26,089,190**

General Fund RevenueGeneral Fund Revenue

*Projected**Budget Request

General Fund Net RevenueGeneral Fund Net Revenue

*Projected**Budget Request

Division RevenueDivision Revenue

*Projected**Budget Request

1 Division Conference

ACRL

2 Division ConferencesPLA & AASL

1 Division Conference

ACRL

2 Division ConferencesPLA & AASL

1 Division Conference

ACRL

General Fund and General Fund and Divisions RevenuesDivisions Revenues

*Projected

**Budget Request

1 Division Conference

ACRL

2 Division ConferencesPLA & AASL

1 Division Conference

ACRL

2 Division ConferencesPLA & AASL

1 Division Conference

ACRL

General Fund & DivisionsGeneral Fund & DivisionsNet Asset BalancesNet Asset Balances

Division Overhead & Division Overhead & General Fund Investment/SupportGeneral Fund Investment/Support

(As determined from the Annual Indirect Cost Study)(As determined from the Annual Indirect Cost Study)

**Projected

Note: These figures do not represents costs that are actually paid. They are only representative of the overhead costs as determined by the Indirect Cost Study.

ALA Composite & ALA Composite & Division Indirect Cost RatesDivision Indirect Cost Rates

Rates determined from the annual Indirect Cost Study.

ALA has its Financial Strengths ALA has its Financial Strengths

Each dues dollar is matched by more than a Each dues dollar is matched by more than a dollar in revenue generated by conferences, dollar in revenue generated by conferences, publishing and grants.publishing and grants.

As a result, we can accomplish much more than As a result, we can accomplish much more than we could if we were totally dependent on dues. we could if we were totally dependent on dues.

Another strength is that because ALA has four Another strength is that because ALA has four major sources of revenue, its budget is more major sources of revenue, its budget is more stable than an organization dependant on one stable than an organization dependant on one revenue source.revenue source.

……and Weaknessesand Weaknesses

Because the Association has these other Because the Association has these other revenue sources, it is also vulnerable to forces revenue sources, it is also vulnerable to forces operating in the “business” world and larger operating in the “business” world and larger

economyeconomy (e.g. the precipitous nation-wide drop in advertising last year).(e.g. the precipitous nation-wide drop in advertising last year).

BudgetsBudgets for state, county, city and university for state, county, city and university libraries also support ALA publishing, libraries also support ALA publishing, conference travel and even dues in some cases. conference travel and even dues in some cases. These budgets are under pressure as we know These budgets are under pressure as we know all to well.all to well.

New Business DevelopmentNew Business Development

Revenue weakness or even uncertainty underscore Revenue weakness or even uncertainty underscore the need for new businesses and new sources of the need for new businesses and new sources of revenue for the association.revenue for the association.

Whether or not the economy rebounds, conference Whether or not the economy rebounds, conference

attendance and publishing revenue will remain attendance and publishing revenue will remain “mature businesses”.“mature businesses”.

Over the last year, we have begun to look at ways in Over the last year, we have begun to look at ways in which we might develop new products for the library which we might develop new products for the library community and the public at large. community and the public at large.

Continuing this effort will produce results over time.Continuing this effort will produce results over time.

The Future?The Future?

Working together, we have created a Working together, we have created a respected Association that is financially strong. respected Association that is financially strong.

As we experience the worst recession in 80 As we experience the worst recession in 80 years, we need to deal with the immediate years, we need to deal with the immediate challenges of downsizing and getting through challenges of downsizing and getting through tough times. tough times.

But we also need to continue to move forward But we also need to continue to move forward on our strategic objectives, innovate, and on our strategic objectives, innovate, and support our members as they fight for libraries support our members as they fight for libraries and library jobs. and library jobs.

Through prudent management of our Through prudent management of our resources, we can leverage the Association’s resources, we can leverage the Association’s financial strength financial strength (to support new business (to support new business development)development) and lay the groundwork for future and lay the groundwork for future success.success.

Fiscal Year 2011 BudgetFiscal Year 2011 Budget- - The Next Steps -The Next Steps -

Details and ApprovalDetails and Approval

ALA’s Financial Value PropositionALA’s Financial Value Proposition

“To develop and deploy the financial resources that support the strategic plan and delivery of programs that are responsive to member needs and support the improvement of library service.”

Budget Aligned with ALA Budget Aligned with ALA Programmatic PrioritiesProgrammatic Priorities

(Key Action Areas)(Key Action Areas)

Advocacy for Libraries and the Profession

Diversity

Equitable Access to Information and Library Services

Education and Lifelong Learning

Intellectual Freedom

Literacy

Organizational Excellence

Total ALA FY 2011Total ALA FY 2011Budgetary CeilingBudgetary Ceiling

++

Net Assets Net Assets (Unexpended balance remaining from FY 2010)(Unexpended balance remaining from FY 2010)

Budgetary CeilingBudgetary Ceiling==

Revenue Revenue (Anticipated for FY 2011)(Anticipated for FY 2011)

See Article IX, page 30 of ALA Handbook

$26,822,483$26,822,483

GENERAL FUNDGENERAL FUND REVENUE PROJECTIONSREVENUE PROJECTIONS

General Fund AnnualGeneral Fund Annual Estimate of Income Estimate of Income

Budgeted FY 2011 RevenuesBudgeted FY 2011 Revenues

DuesDues Material SalesMaterial Sales SubscriptionsSubscriptions AdvertisingAdvertising Meet/ConferencesMeet/Conferences MiscellaneousMiscellaneous

Total Budgetary CeilingTotal Budgetary Ceiling

$6,287,800$6,287,8005,358,1345,358,1342,434,0532,434,0533,511,5323,511,5326,786,9506,786,9502,444,0142,444,014

$26,822,483$26,822,483

Division Annual Estimate of IncomeDivision Annual Estimate of Income

Estimated Beginning -Estimated Beginning - Net Asset BalanceNet Asset Balance (Ending FY10 Projection)(Ending FY10 Projection)

Budgeted FY 2011 RevenueBudgeted FY 2011 Revenue Other Revenue Transfers*Other Revenue Transfers*

Total Budgetary CeilingTotal Budgetary Ceiling

$11,035,827$11,035,82713,860,33713,860,337

24,15024,150

$24,920,314$24,920,314

*Life and Continuing Member Dues

Round Tables AnnualRound Tables Annual Estimate of IncomeEstimate of Income

Estimated Beginning - Net Asset Balance (Ending FY10 Projection)

Budgeted FY 2011 Revenue

Total Budgetary Ceiling

$784,810$363,775

$1,148,585

Grants and Awards Annual Grants and Awards Annual Estimate of IncomeEstimate of Income

Non-GovernmentNon-GovernmentGovernmentsGovernmentsContributionsContributions

Total Budgetary CeilingTotal Budgetary Ceiling

$1,384,686 $1,384,686 1,711,8231,711,823

523,599 523,599

$3,620,108$3,620,108

Long-Term Investment Long-Term Investment Annual Estimate of IncomeAnnual Estimate of Income

Budgeted FY 2011 RevenueBudgeted FY 2011 Revenue Interest/Dividend Transfer*Interest/Dividend Transfer* Spectrum Interest/DividendsSpectrum Interest/Dividends Spectrum Capital GainSpectrum Capital Gain Life Member DuesLife Member Dues

Total Budgetary CeilingTotal Budgetary Ceiling

$548,212 $548,212 -77,727-77,72771,28471,28489,10489,104

-68,950-68,950

$561,923$561,923

*Per policy 8.5.1

Technology FundTechnology Fund

$89,000$89,000

Total FY 2011 ALATotal FY 2011 ALA Budgetary Ceilings Budgetary Ceilings

General FundGeneral FundDivisionsDivisionsRound TablesRound TablesGrants & AwardsGrants & AwardsLong Term InvestmentsLong Term InvestmentsTechnology FundTechnology Fund

Total ALA Total ALA FY 2011 Budgetary Ceiling FY 2011 Budgetary Ceiling

$26,822,483$26,822,48324,920,31424,920,314

1,148,5851,148,5853,620,1083,620,108

561,923561,92389,00089,000

$57,162,413$57,162,413

COUNCIL ACTION COUNCIL ACTION TO BE TAKENTO BE TAKEN

REQUEST OF COUNCILREQUEST OF COUNCIL

Approval of FY 2011Approval of FY 2011 Budgetary Ceiling ofBudgetary Ceiling of

$57,162,413$57,162,413

Thank You for Thank You for Your Attention Your Attention