2011 Fhrboc Presentation T&T

Th L t t T d iThe Latest Trends in Presenting Financial g

Information

AgendaAgenda

• IntroductionsIntroductions• Financial information basics

di i l fi i l• Traditional financial reports• Needs of management (address KPI’s here)• Needs of Board and Committees (address KPIs)• Reports to meet these needsReports to meet these needs• Software alternatives

Financial Information BasicsFinancial Information Basics

• Appropriate informationi l i f i• Timely information

• Effective information• Key performance indicators (KPIs)

Traditional Financial ReportsTraditional Financial Reports

• Statement of financial positionS f i i i• Statement of activities

• Statement of cash flows• Narrative

Traditional reports: statement of financial position

Foundation for the Widening of Television ScreensStatement of Financial Position

As of December 31,

2010 2009ASSETS

CURRENT ASSETSCash 4,847,203$ 2,082,306$ Investments 8,681,362 7,114,572 Accounts Receivable 1,320,870 1,415,673 Grants Receivable - short term 1,386,865 2,298,248 Prepaid Expenses 1,165,914 784,239 Due From Foundation 130,588 164,422 Publication Inventory 287,778 297,696

TOTAL CURRENT ASSETS 17,820,580 14,157,156

FIXED ASSETSMembership Database 2,433,462 2,315,187 Office Furniture & Equipment 346,540 337,965 Computer Equipment 831,501 817,542 Accumulated Depreciation ( 2,416,104 ) ( 1,612,269 ) TOTAL FIXED ASSETS 1,195,399 1,858,425

Grants Receivable - long term 2,773,730 4,596,496 TOTAL ASSETS 21,789,709$ 20,612,077$

LIABILITIES & NET ASSETSCURRENT LIABILITIESAccounts Payable 544,344$ 486,483$ Accrued Expenses 514,068 446,040 Deferred Income-Individual 695,553 513,378 Deferred Income-Program 3,873,567 2,914,791 Deferred Income-Accreditation Fees 1,012,404 1,238,535 Note Payable - short term portion 313,701 301,356 TOTAL CURRENT LIABILITIES 6,953,637 5,900,583

NON CURRENT LIABILITIESNON-CURRENT LIABILITIESDeferred Rent 50,202 57,138 Note Payable - long term portion 664,856 992,902 TOTAL NON-CURRENT LIABILITIES 715,058 1,050,040

TOTAL LIABILITIES 7,668,695 6,950,623

NET ASSETSBeginning of Year:Permanently Restricted 1,505,991 1,505,991 Temporarily Restricted 7,678,245 4,399,380 Unrestricted 4,477,218 8,651,407

Total Beginning of Year Balance: 13,661,454 14,556,778

Current-year Change in Net Assets 459,560 ( 895,324 )

TOTAL NET ASSETS 14,121,014 13,661,454

TOTAL LIABLITIES AND NET ASSETS: 21,789,709$ 20,612,077$

For Management's Internal Use Only

Traditional reports: statement of activities

Foundation for the Widening of Television ScreensStatement of Activities

For the Twelve Months EndedDecember 31,

2010 2009 Increase/ % Increase/ Annual (Under)/Over Budget %YTD Actual YTD Actual (Decrease) (% Decrease) Budget Variance Variance

REVENUE:Contributions 3,680,748$ 5,063,205$ ( 1,382,457 )$ -27% 3,750,000$ ( 69,252 )$ -2%Grants 559,920 1,074,639 ( 514,719 ) -48% 510,000 49,920 10%Membership Dues 1,701,891 1,948,802 ( 246,911 ) -13% 1,854,727 ( 152,836 ) -8%Program Dues 7,084,414 7,034,067 50,347 1% 6,680,000 404,414 6%Accreditations 61,017 160,521 ( 99,504 ) -62% 204,945 ( 143,928 ) -70%Registrations 2,342,544 2,566,305 ( 223,761 ) -9% 2,145,000 197,544 9%Sponsorships 47,250 130,050 ( 82,800 ) -64% 40,500 6,750 17%p p , , ( , ) % , , %Exhibits 274,350 241,995 32,355 13% 405,000 ( 130,650 ) -32%Publications 528,435 628,227 ( 99,792 ) -16% 676,500 ( 148,065 ) -22%Royalties 34,653 47,892 ( 13,239 ) -28% 76,200 ( 41,547 ) -55%Administrative 947,748 1,008,711 ( 60,963 ) -6% 977,049 ( 29,301 ) -3%Advertising 255,273 323,466 ( 68,193 ) -21% 344,400 ( 89,127 ) -26%Interest & Dividends 192,756 344,211 ( 151,455 ) -44% 195,000 ( 2,244 ) -1%Realized Gains/(Losses) 441,120 ( 138,646 ) 579,766 - - 441,120 - Other 37,143 42,294 ( 5,151 ) -12% 59,700 ( 22,557 ) -38%

TOTAL REVENUE: 18,189,262 20,475,739 ( 2,286,477 ) -11% 17,919,021 270,241 2%

EXPENSES:Salaries 5,852,463 5,688,918 163,545 3% 5,615,055 237,408 4%Benefits 1,331,637 1,281,075 50,562 4% 1,228,392 103,245 8%Training and development 428,361 450,267 ( 21,906 ) -5% 424,000 4,361 1%Advertising and promotion 150,825 256,509 ( 105,684 ) -41% 171,000 ( 20,175 ) -12%Stipends/tuition 1,913,888 2,651,226 ( 737,338 ) -28% 2,660,000 ( 746,112 ) -28%Facilities and equipment 136,500 96,462 40,038 42% 108,000 28,500 26%Postage and delivery 98,724 113,511 ( 14,787 ) -13% 93,750 4,974 5%Printing and production 315,360 452,394 ( 137,034 ) -30% 421,200 ( 105,840 ) -25%Supplies 488,448 426,528 61,920 15% 445,197 43,251 10%Telephone and utilities 220,353 162,390 57,963 36% 126,000 94,353 75%T l 580 441 498 747 81 694 16% 510 000 70 441 14%Travel 580,441 498,747 81,694 16% 510,000 70,441 14%Other 1,002,909 733,536 269,373 37% 181,500 821,409 453%Professional fees 1,936,629 2,217,039 ( 280,410 ) -13% 1,036,899 899,730 87%Occupancy 1,593,009 1,523,250 69,759 5% 1,673,358 ( 80,349 ) -5%Depreciation 503,835 556,719 ( 52,884 ) -9% 483,045 20,790 4%Temporary assistance 48,072 73,167 ( 25,095 ) -34% 45,000 3,072 7%Insurance 53,040 52,500 540 1% 51,000 2,040 4%Commission expense 336,324 377,649 ( 41,325 ) -11% 315,300 21,024 7%Subscriptions and pubs 50,892 55,134 ( 4,242 ) -8% 41,400 9,492 23%Meetings and conventions 1,510,614 2,129,622 ( 619,008 ) -29% 1,102,800 407,814 37%Bank fees 86,529 94,905 ( 8,376 ) -9% 60,000 26,529 44%G t 196 608 479 414 ( 282 806 ) 59% 154 000 42 608 28%Grants 196,608 479,414 ( 282,806 ) -59% 154,000 42,608 28%Bad debts 140 200,000 ( 199,860 ) - - 140 -

TOTAL EXPENSES: 18,835,601 20,570,962 ( 1,735,361 ) -8% 16,946,896 1,888,705 11%

CHANGE IN NET ASSETS FROM OPS ( 646,339 ) ( 95,223 ) ( 551,116 ) 579% 972,125 ( 1,618,464 ) -166%

UNREALIZED GAINS/(LOSSES) 1,105,899 ( 800,101 ) 1,906,000 - - 1,105,899 -

TOTAL CHANGE IN NET ASSETS: 459,560$ ( 895,324 )$ 1,354,884 -151% 972,125$ ( 512,565 )$ -53%


Traditional reports: statement of cash flows

Foundation for the Widening of Television ScreensStatement of Cash Flows

For the Twelve Months Ended

2010 2009YTD Actual YTD Actual

CASH FLOWS FROM OPERATING ACTIVITIESChange in Net Assets 459,560$ ( 895,324 )$ Adjustments to Reconcile Change in Net Assets to NetCash Provided by Operating Activities:

Depreciation 503,835 556,719 Bad Debts 140 200 000

December 31,

Bad Debts 140 200,000 Unrealized (Gain) Loss on Investments ( 1,105,899 ) 800,101 Realized (Gains) Losses on Sale of Investments ( 441,120 ) 138,646

Change in Assets and Liabilities:Accounts Receivable 94,803 ( 341,824 ) Grants Receivable - short term 911,383 131,832 Prepaid Expenses ( 381,675 ) 118,299 Due From Foundation 33,834 ( 30,991 ) Publication Inventory 9,918 ( 29,883 ) Grants Receivable - long term 1,822,766 ( 678,221 ) Accounts Payable 57,861 65,998 yAccrued Expenses 68,028 41,662 Deferred Income-Individual 182,175 ( 365,892 ) Deferred Income-Program 958,776 ( 723,119 ) Deferred Income-Accreditation Fees ( 226,131 ) ( 114,782 ) Deferred Rent ( 6,936 ) ( 8,281 )

Net Cash Provided by (Used in) Operating Activities 2,941,318 ( 1,135,060 )

CASH FLOWS FROM INVESTING ACTIVITIESPurchases of Property and Equipment ( 156,921 ) ( 82,991 ) Purchases of Investments ( 811,930 ) ( 548,792 ) Proceeds from Sale of Investments 1,093,786 759,042

Net Cash Provided by Investing Activities 124,935 127,259

CASH FLOWS FROM FINANCING ACTIVITIESPrincipal Payments on Note Payable ( 301,356 ) ( 285,411 )

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,764,897 ( 1,293,212 )

Cash and Cash Equivalents - Beginning of Year 2,082,306 3,375,518

C h d C h E i l t E d f Y 4 847 203$ 2 082 306$Cash and Cash Equivalents - End of Year 4,847,203$ 2,082,306$

Supplemental Disclosure of Cash Flow Information

Cash Paid During the Year for Interest 228,663$ 244,882$

Cash Paid During the Year for Income Taxes 25,792$ 38,211$


What Governing Boards NeedWhat Governing Boards Need

“governing boards do not need more reports or more information What they do need isor more information. What they do need is more meaning”

Lawrence Butler

Needs of managementNeeds of management

• Key performance indicators:Key performance indicators:– Mission‐drivenTie back to strategic planning– Tie back to strategic planning

– Operationally relevantM bl– Measurable

– Financial and/or non‐financialDiff f h i i– Different for each organization


• Mission‐drivenMission driven• Are we doing what we’re supposed to be doing?

• Tied to strategic planningTied to strategic planning• Are the tactics advancing the plan?

• Operationally relevantOperationally relevant• What’s actually going on? – Registrations coming in later, giving patterns changing, AR growing?

• What isn’t showing up?


• MeasurableMeasurable• Original goals compared to current reality

• Financial and/or non‐financialFinancial and/or non‐financial• Cash on hand and cash flow projection• Actual member numbers, renewal/retention rate, /• Duration of pledges, percentage collected• Timeframe for multi‐year grants

• Organizations are different• Culture affects how people look at financial reportsreports

Needs of boards: Summarized data & KPI

• Diversity of background and expertise makes boardDiversity of background and expertise makes board reporting complicated

• Volunteer leadership have day jobs; time is precious p y j ; pand must be respected.

• Can provide high‐level dashboard reporting with p g p gdetailed supplemental information

• Reporting should be focused on strategic areas rather than operational areas. Non‐financial information becomes more important.

Needs of boardsNeeds of boards

• Boards see numbers and dollars throughBoards see numbers and dollars through different lens

• Timely information is key especially if there is• Timely information is key, especially if there is bad newsD hb d h d il l i h• Dashboards show detail at a glance – i.e. what makes up a particular revenue or expense line

• Linking strategic plan to actual goals to numbers is critical – but often is the bridge too far for some boards

Needs of management:Basic financial data

Good information can we learn more?Good information – can we learn more?

Needs of management:Visualization of data

Cash balances drop in May – good to know for planning

Balances are influenced by market forces but also by withdrawalsknow for planning forces, but also by withdrawals

Needs of management: Basic financial data

Good information but can we learn more about receivables?Good information, but can we learn more about receivables?


Year to year comparison Current year compositionYear‐to‐year comparison Current‐year composition

Needs of management: f l dBasic financial data

What do we need to know about our liabilities?What do we need to know about our liabilities?


How old are the payables?When will the revenue be

recognized?How old are the payables? recognized?


Membership is down but why?Membership is down, but why?


Stacked bar chart – helps to get a sense of the total volume

Line chart – easy to see trends for each categorysense of the total volume each category


Why are event registrations lower?Why are event registrations lower?


Total registrations by weeks out –what happened at the end?

Registrations by category – looks like all categories were affectedwhat happened at the end? like all categories were affected.

Data visualization applicationsData visualization applications

• Microsoft Excel:Microsoft Excel: – 2007 and 2010 versions have better charting capabilitycapability

– You already have it on your computers; no additional purchase necessaryadditional purchase necessary

– Data are not automatically refreshed; no real‐time reporting capabilityp g p y

– Can be labor‐intensive to set up

Data visualization applications

• NetCharts performance dashboardsNetCharts performance dashboards• Tableau

d• Dundas• Xcelcius• QlikView

Data visualization applications

• Web‐basedWeb based• Real‐time connectivity/automatic refreshC i i di d b• Connectivity to diverse databases

• Ease of use/comfortable interface• Technical knowledge required?• Customizable views/chartingCustomizable views/charting

Implementation SuggestionsImplementation Suggestions

• Less is morek i h dil il bl d• Work with readily available data

• Assess the reader’s readiness• Carefully choose what you present

Contact InformationContact InformationAnna Hofmeister, CPAPartner – Outsource ServicesTate & Tryon CPAs and ConsultantsPhone: (202) 419‐5103

l h fNathan Perrine, CPA MBAh f l ffEmail: [email protected]

Website: www.tatetryon.com

Joanne E Dunne CAE

Chief Financial Officer, Accounting Services ClientsTate & Tryon CPAs and ConsultantsPhone: (202) 419 5154Joanne E. Dunne, CAE

Interim Executive DirectorNational Council of Catholic WomenPhone: (703) 224‐0990

Phone: (202) 419‐5154Email: [email protected]: www.tatetryon.com

Phone: (703) 224 0990Email: [email protected] [email protected]: www.nccw.orgg

Documents

2011 Fhrboc Presentation T&T