Theresa Coble, Ph.D.
Associate Professor
Arthur Temple College of Forestry & Agriculture and the Forest Resources Institute
Stephen F. Austin State University
NAI Treasurer’s Report
November 2014
Dear colleagues,
In my role as NAI Treasurer, I have reviewed the NAI financial statements provided by Margo Carlock,
NAI Executive Director. Specifically, I have reviewed NAI Organizational Unit projected income and
expenses, including estimated impacts to NAI cash flow. I have reviewed several 3rd-quarter 2014
financial documents, including budget vs. actuals with annotations, balance sheet and profit/loss
statements, and NAI executive staff reports. Finally, I reviewed the cash flow forecast for FY2015.
Please note, I have not reviewed financial information related to accounts receivable, credit card
statements, checking statements, mortgage statements, line of credit statements, and class account
statements.
The cash flow forecast for FY2015 outlines anticipated revenue on a month-by-month basis. The cash
flow forecast outlines anticipated membership income broken out by membership category. It highlights
expected certification income from course material sales, entry-level certification and recertification
fees, and professional level certification and recertification fees. The cash flow forecast indicates how
much revenue NAI anticipates generating by providing training workshops, webinars, consulting, and
management training. It outlines anticipated revenue from the national workshop and international
conference. It also indicates anticipated income from Interp Press and non-Interp Press publication sales,
NAI store merchandise, and advertising revenue. The cash flow forecast outlines anticipated revenue
from grants, various types of contributions (e.g., annual fund and scholarship donations), and rent and
interest income. The total anticipated income for FY2015 is $1,158,410 versus $1,121,827 for FY2014.
The cash flow forecast for FY2015 also outlines anticipated expenses on a month-by-month basis.
Specifically, the cash flow forecast highlights program expenses relating to membership services
(including travel, supplies, printing, postage, marketing, discounts, and Legacy/JIR expenses),
certification (including travel, supplies, printing, postage, contract services, workshop expenses, cost of
materials, and scholarships), non-certification training (including travel, supplies, printing, postage,
contract services, and webinar expenses), national conference (including travel, supplies, printing,
postage, catering, exhibit hall, speakers/program costs, scholarships, and storage), international
conference (including travel, supplies, printing, postage, contract services, and scholarships),
publications and merchandise (including Interp Press author royalties, publication costs, storage, nonInterp Press publications inventory, merchandise inventory, postage, shipping supplies, and sales tax),
and other program expenses related to staff travel, advocacy and other miscellaneous costs. The total
anticipated program expenses for FY2015 are $360,751.
The cash flow forecast for FY2015 outlines anticipated management and general expenses on a monthby-month basis. These expenses include salaries and wages, payroll and unemployment taxes, various
employee benefits, operational expenses (including supplies, printing, postage, contract services,
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licenses and permits, accounting fees, and legal fees), occupancy costs for the property at 230 Cherry St.
(including building insurance, building supplies, cleaning and maintenance, repairs, contract services,
utilities, property taxes, RMBO Triple Net, and mortgage payments), other indirect operating expenses
(including telecommunications, equipment lease, software licenses and fees, iMIS AMS system, bank
service charges, credit card fees, and bad checks/bad debts), board expenses (including travel, D & O
insurance, and various board meeting and election expenses), development expenses related to
organizational development and fundraising, and interest expenses for NAIs line of credit and mortgage
balances. The total anticipated management and general expenses for FY2015 are $790,878.
To prepare the FY2015 cash flow forecast, Margo Carlock carefully scrutinized NAI’s financial history
and records, and carefully assessed known and anticipated revenue and expenses. Thus, the projections
she provides for FY2015 total expenses and net income should encourage NAI members and elected
officials:
If Margo Carlock’s projections hold, NAI will begin building modest financial reserves during FY2015.
I call upon all NAI members, organizational unit leaders, and board members to help NAI turn this
financial corner in 2015!
NAI’s new chart of accounts is now in place. Thus, it will be much easier to implement a full-cost
accounting approach to assessing the financial profitability of NAI’s program areas (or business lines).
These efforts are consistent with the “matrix map” approach outlined in Bell, Masaoka & Zimmerman’s
(2010) text entitled Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. As we
enter a season of renewed financial leadership and move to implement NAI’s strategic plan, I encourage
NAI leaders to learn more about the matrix mapping process and to consider applications to strengthen
financial decision making.
I would like to commend all NAI staff for their earnest efforts to provide high quality, cost effective
programs and services to NAI members.
In the future, I would like to continue working with NAI’s board, staff and committee members, as
appropriate, on the following financial tasks: expand revenue generation activities/capacity, fairly and
efficiently manage organizational unit budgets, increase NAI’s reserves of unrestricted funds, develop
financial benchmarks, accurately assess the cost-benefit of NAI programs, implement financial
objectives outlined in NAI’s strategic plan, leverage resources through effective partnerships, further
develop NAI’s volunteer resources, and update NAI financial policies on an as needed basis.
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