ALA Finance Best Practices_presentation
ALA FINANCE BEST PRACTICES
ASSOCIATION FOR LIBRARY SERVICE TO CHILDREN BUDGET PROCESS
2011 Midwinter Meeting Friday, January 7, 2011
ALSC’s Finances Background
Simple structure- no chapters or sections
Focus on strategic budget and finance operations
Added Fiscal Officer
Budget Committee includes Fiscal Officer, Vice-
President/President, Past-President
Funding decisions based on strategic plan and continuing operations
11Endowments and Long-Term Investments offset operations and provide opportunities to expand services
Awards, scholarships, continuing education, leadership development
Budget Preparation
Continuous cycle
September - November
Staff review budget notes and evaluate projects
Create division budget assumptions
Use past trend data
Look at variances and adjust
Factor in new products or services
December
Prepare budget summary and narrative for Budget
Committee
Detailed Explanations
Budget Summary
Budget Narrative
Budget Preparation cont’d
Midwinter Meeting
Budget Committee meets twice
Review strategic plan, operations, initiatives
Review endowment performance and activity
Increase funding if necessary
Review requests for funding
Discuss ALA finances
Prepare and present preliminary proposed budget to the ALSC Board
Endowments
Operating Fund Reserves (Net Asset Balance)
Four or more months is acceptable
“Remarkable” organizations carry an average reserve of 90% of annual expenses.
Endowment/LTI Transfers
$300,000 earmarked for a new Board Initiatives LTI
Increase fund balances of existing LTIs through transfers
Cover new expenses
Budget Preparation cont’d
Midwinter Meeting
Budget Committee meets twice
Review strategic plan, operations, initiatives
Review endowment performance and activity
Increase funding if necessary
Review requests for funding
Discuss ALA finances
Prepare and present preliminary proposed budget to the ALSC Board
Budget Preparation cont’d
Board will review and approve preliminary budget for presentation to BARC in spring.
February-June
Executive Director incorporates necessary adjustments as assumptions change or Board action requires
Executive Director presents budget to BARC
Executive Director prepares final preliminary budget
Budget Committee reviews and makes recommendations to Board
Board approves final budget
Budget Preparation cont’d
July-August
Executive Director prepares monthly allocations
Professional membership renewals
Non-serial publication production schedule
Conference and event expenses
September
Start of fiscal year
Monitoring
Staff monitor and track their project areas
Tracking spreadsheets developed from budget notes
Staff process accounts receivable and payable
Staff provided with ALA chart of accounts and ALSC project numbers
Chart of Accounts
ALSC’s Project Numbers
Monitoring cont’d
Staff monitor and track their project areas
Tracking spreadsheets
Staff process accounts receivable and payable
Staff provided with ALA chart of accounts and ALSC project numbers
Monthly reconciliation by Executive Director
Review FRX reports looking at variances
Look for line items that were not budgeted
Correct any miscodes or errors on monthly basis
Provide monthly summary report with analysis to ALA and
Budget Chair
Mid-Year Projections
February/March
Begin to formulate mid-year projections
Analyze year-to-date income and expenses against allocations
Look at overall operating fund line items
Drill down to project level line items
Submit projections to ALA and Budget Committee
Continue to monitor and analyze in monthly reports
This helps both the Division and ALA project where they will be at the end of the fiscal year. Allowing for expense reductions, if necessary.
Contact
Aimee Strittmatter
astrittmatter@ala.org
312-280-2162
