IRIS
FINANCIAL OVERVIEW
IRIS Board of Directors Orientation
May 11, 2015
2
Financial Overview Topics
• Financial Services Staff
• IRIS Awards
• Audits/Reviews
• Financial Statements
• Indirect Cost Recovery
• Unrestricted Funds/Investments
• Budget & Finance Committee
3
Financial Services Staff
Candy Shin,
CFO
Dave Fillebrown,
Accounting
Manager
Robin Morris,
Project Cost
Controller
Financial Statements, GL
Dee Mann,
A/R Staff Acct
Budgets,
Subaward/Contract Invoices
Travel expense reports
A/R, Rebills
Josephine Aka,
A/P Manager
Robert Austin,
Purchasing
Staff Acct
Checks, ACH
Purchase Orders
Email:
<admin@iris.edu>
4
FY15 IRIS AWARDS
Active IRIS awards (7/1/14-6/30/15)
5
IRIS Awards – Accounting Codes
Code
Award Number
PI
Start
End
Budget
2005-xxx
EAR-0733069 USArray C.A.
Woodward
10/1/08
9/30/14
$76,244,193
1005-xxx
EAR-1261681 SAGE C.A.
Detrick
10/1/13
9/30/18
$57,873,116
1080-xxx
EAR-1063471 Core C.A.
Detrick
10/1/11
12/31/14
$30,569,736
1081-xxx
OCE-1112722 OMO C.A.
Detrick
2/1/12
1/31/17
$19,333,767
1082-xxx
ICER-1343709 EarthCube
Ahern
9/15/13
8/31/15
$1,783,919
1071-xxx
EAR-1040292 CHILE
Detrick
9/15/10
8/31/15
$1,000,000
1083-xxx
PLR-1337861 GEOICE
Woodward
10/1/13
9/30/16
$636,426
1078-600
PLR-1304011 GLISN 2
Detrick
9/1/13
8/31/18
$461,020
1075-700
EAR-1156739 REU
Taber
6/1/12
5/31/17
$377,991
1085-400
LLNL B610206 Tajik
Hafner
9/22/14
9/30/15
$146,286
1079-xxx
ICER-1321600 SAVI
Ahern
9/1/13
8/31/18
$138,193
1084-700
EAR-1425893 EC Workshop
Taber
5/1/14
4/30/16
$73,801
1086-xxx
JPL Subcontract1507934 NASA Taber
9/23/14
6/30/15
$65,000
1066-700
UNAVCO RESESS
Taber
9/15/09
8/31/15
$43,857
1065-700
DUE-0942559
Taber
9/15/09
8/31/14
$32,609
CCLI
6
IRIS AUDITS & REVIEWS
What do you call an accountant with an opinion?
7
Audits/Reviews
OMB Circular A-133 Audit
IRIS/McGladrey LLP
Desk Reviews
NSF BFA - contractors
Proposal Reviews
NSF CAAR (DIAS)
Indirect Rate Proposal/Rate Agreement
Business Systems Review
NSF BSR Team (LFO)
Management Review
NSF Program
Program Review
IRIS/NSF Program
Property Control System Review
NSF Property Mgmt
(DAS)
Incurred Cost and Accounting System
Audit
NSF OIG – DCAA
8
A-133 Audit
OMB has consolidated its grant
guidance for recipients into a
single document 2 CFR Part 200.
OMB Circular A-133, “Audits of States, Local Governments,
and Non-Profit Organizations”
• Non-Federal entities that expend $500,000 or more in Federal
awards in a year  increased threshold to $750,000
• Audit of financial statements
• Tests of internal control over the Federal program
• Procedures to determine whether the auditee has complied
with laws, regulations, and provisions of grant agreements
McGladrey LLP
• Tom Sneeringer, Partner
• FY2001 – FY2014
9
FY14 Audit Report
10
Balance Sheet
Assets
FY14
Cash & cash equivalents
$
Receivables
Prepaids, advances, & other assets
Investments
Leasehold improvements, net
Total assets
545,086
FY13
$
246,035
4,873,294
4,844,367
285,095
315,461
2,182,880
1,155,047
105,278
119,616
$
7,991,633
$
6,680,526
$
1,779,942
$
1,890,228
Liabilities
Accounts payable & accrued expenses
Subawards payable
Deferred rent and other liabilities
Total liabilities
$
3,165,691
2,119,001
311,625
291,437
5,257,258
$
4,300,666
Net Assets
Unrestricted
Temporarily restricted
Net assets
$
$2,709,725
$2,355,410
24,650
24,450
2,734,375
$
2,379,860
11
Temporarily Restricted Net Assets
• These funds have donor-imposed restrictions that can
be fulfilled by one of two ways - passage of a defined
period of time (time restriction) or by performing defined
activities (purpose restriction).
IRIS Example (beginning in 2009):
John C. Lahr Educational Seismology Fund
FY09 Contributions
$25,980
FY10 Contributions
$775
FY10 Purchase 4 AS-1s
<$2,605>
FY11 Contributions
$300
FY14 Contribution
$200
Balance as of 6/30/11
Balance as of 6/30/12
Balance as of 6/30/13
Balance as of 6/30/14
$24,450
$24,450
$24,450
$24,650
12
Revenues
 Awards/Grants
•
Cost-reimbursable awards
- Indirect cost recovery limitations
- Management fees
•
•
Fixed-price awards
Program Income
 Membership Dues
 Interest/Dividends
 Realized/Unrealized Gain on Investments
 Contributions/Donations
13
Statements of Activities
Revenues
Revenue:
FY14
FY13
$38,127,768
$32,911,215
Program income
355,880
616,132
Sale of ocean cable
248,500
1,066,000
Investment income
240,377
130,688
Contributions
148,399
Federal awards
Membership dues
Total Revenue
7,500
7,500
$39,128,424
$34,731,535
14
Innovation Fund Donations
Month
April
May
June
Online
Contributions
1 (test)
21
11
Checks
Amount
7
13
$5.00
$17,955.00
$15,238.81
Winston Chan - commitment
FY14 Donations Revenue
$100,000.00
$133,198.81
Total Innovation Fund Donations
as of 3/31/15 = $141,180.81
15
Expenses
FY14
FY13
Program services:
PASSCAL (+ Polar)
$
5,904,131
$
3,711,749
GSN
3,477,339
3,268,411
Data Services
4,377,151
3,544,944
Education & Public Outreach
1,336,565
930,580
461,170
237,918
945181
495,088
Community Activities
Instrumentation Services Mgmt
Transportable/MT Arrays
4,624,349
EarthScope - USArray
7,586,865
15,118,351
OBSIP Management Office
6,272,765
2,589,122
37,954
49,165
0
19,559
153,857
108,778
3,596,582
3,449,122
$ 38,773,909
$ 33,522,787
Chile MRI
Chile RAPID
Other - Unallowable Expenses
Indirect Expenses
Total Expenses
16
G&A (excl. DC Office O/H)
6.7% Unallowable
DMC Office Overhead
0.8%
Expenses
0.4%
Community Activities
Chile
1.2%
0.1%
DC Office Overhead
1.8%
IRIS FY14 Expenses
by Program
PASSCAL
15.2%
Community Activities
Chile
OMO
16.2%
GSN
9.0%
PASSCAL
GSN
Data Services
EPO
ISM
TA/MT Arrays
Data Services
11.3%
USArray
19.6%
USArray
OMO
TA/MT Arrays
11.9%
ISM
2.4%
EPO
3.4%
17
Other
9.9%
Unallowable Expenses
0.4%
Salaries
12.1%
IRIS FY14 Expenses
by Expense Type
Fringe Benefits
6.7%
Salaries
Fringe Benefits
Equipment
Travel
Equipment
10.6%
Participant Support
Materials & Supplies
Consultant Services
Travel
2.0%
Participant Support
1.6%
Subawards
51.0%
Materials & Supplies
4.8%
Consultant Services
0.9%
Subawards
Other
Unallowable Expenses
18
INDIRECT EXPENSES
DC Office Overhead
DMC Office Overhead
G&A
19
Office Overhead Pools
IRIS Headquarters
Washington, DC
Description
Office Manager
Salaries/Fringe
Rent
Suite 400
Data Management Center
Seattle, WA
FY14
$ 67,203
543,138
(11,536 sq ft)
Description
Office Manager
Salaries/Fringe
14,211
Supplies
Other
(equipment leases,
postage, internet,
telephone, water, misc.)
74,937
Other
(equipment leases,
postage, internet,
telephone, water, misc.)
699,490
Office Overhead Base = $1,959,894
DC Office O/H Rate = 35.69%
$ 89,900
Rent
Suite 200 (6,409 sq ft)
UWA computer space
Supplies
Total FY14 Expenses
FY14
Total FY14 Expenses
180,387
4,975
28,084
$ 303,346
Office Overhead Base = $1,824,762
DMC Office O/H Rate = 16.62%
General & Administrative (G&A) Pool
All other allowable general and administrative costs
(costs that benefit all programs and cannot be identified
to a specific program) are allocated to programs, grants,
etc. using a base that consists of total costs less
equipment, participant support costs and subaward
costs exceeding $25,000 per subaward per year.
General & Administrative Expenses
G&A Base
= _____ %
21
Expense
Salaries/Fringe
Supplies
Actual
FY14
Proposed
FY14
$ 1,924,438 $ 2,002,808
Proposed
FY15
$ 2,159,035
33,069
25,000
25,000
Travel/Meetings
166,757
207,000
182,500
Professional Services
421,742
346,000
352,600
47,519
55,000
85,000
435,960
434,029
433,845
Other
DC/DMC Office O/H
Total
G&A (MTC) Base
G&A Rate
$ 3,029,484 $ 3,069,837 $ 3,237,980
$12,113,849
$12,406,304
$13,039,006
25.01%
25%
25%
FY14-15 G&A Budgets
Max. Provisional Rates
Revised FY15 SMT G&A Budget Estimate = $3,014,417
22
G&A (Indirect) Personnel
•
Management/Administration (100%)
–
–
–
–
–
–
–
•
Salaries
FY15 Revised
$1,251,640
Fringe Benefits
700,918
Office O/H
443,806
Subtotal
$2,396,364
Business Office (100%)
–
–
–
–
–
–
•
Detrick, President
Linn, Executive Assistant
Willemann, Director of Planning
Woolley, Director of Program Support
Turner, HR Generalist/Administrative
Sobel, Award & Procurement Administrator
<open> Sr. Contracts Administrator
Labor
Aka, Staff Accountant - A/P
Austin, Staff Accountant – Purchasing
Fillebrown, Accounting Manager
Mann, Staff Accountant – A/R
Morris, Senior Project Accountant
Shin, CFO
Split-charged (budgeted under G&A 25-50%)
–
–
–
Baranowski, Meeting Planner (50%)
Dorr, Public Outreach Manager (20%)
Joseph, Web Developer (25%)
79% of total
G&A revised budget
$3,014,417
23
G&A – Professional Services
Description/Vendor
Consultants (e.g., Muco)
FY14 Expenses
FY15 Revised
Budget
% of Total G&A
Budget
$29,496
$20,000
0.66%
$207,782
$240,000
7.96%
Audit
$39,300
$40,000
1.33%
Legal Services
$34,379
$20,000
0.66%
Misc. (e.g., recruiting,
editing, IT)
$87,280
$44,900
1.49%
Corporate Insurance
(Moodys)
$23,505
$34,260
1.14%
$421,742
$399,160
13.24%
HR - Insperity
Subtotal
24
G&A – Travel and Meetings
Description
FY14
Expenses
Staff Travel (Domestic)
$60,768
$60,000
1.99%
$8,442
$10,000
0.33%
$42,823
$28,500
0.95%
$136,141
$98,500
3.27%
$30,616
$36,000
1.19%
Staff Travel (Foreign)
Committee Travel
FY15
Budget
% of Total
G&A Budget
Board of Directors (9)
CoCom (2 BoD)
Planning Committee
Instrumentation Committee
Int’l Development Seismology
Misc. Travel
Subtotal - Travel
Meetings
$24,108
25
Other G&A Expenses
FY14
FY15
Other Costs:
Expenses Budget
Bank Fees
13,232
14,000
Communications
1,002
2,000
Memberships/Subscriptions
6,017
10,000
Miscellaneous
17,726
15,000
Printing
668
5,000
Shipping
1,270
5,000
Temporary Help
150
0
Training
7,954
5,000
Subtotal - Other
48,019
56,000
% of Total
FY15 G&A
Budget
0.46%
0.07%
0.33%
0.50%
0.17%
0.17%
0.00%
0.17%
1.86%
26
G&A Base
FY12
2,852,414
FY13
2,853,526
Program Expenses
Salaries
Fringe
Office O/H
Equipment
Travel
Participant Support
Materials & Supplies
Pubs/Printing
Consultant Services
Subawards (1st 25k)
Subawards
Other Direct Costs
Total Costs
3,448,829
1,844,471
605,668
2,101,581
886,285
491,907
2,769,388
30,657
301,369
870,845
12,503,635
2,183,604
28,038,239
3,667,565
2,009,644
595,776
2,459,917
746,113
463,542
1,735,576
28,469
287,440
766,217
15,382,271
2,417,950
30,560,481
3,339,802
1,856,086
566,879
4,098,597
658,031
639,589
1,820,142
12,441
294,547
1,013,532
18,749,816
2,552,390
35,601,851
G&A Base
12,941,116
12,254,751
12,113,849
G&A Expenses
G&A Rate
22.04%
23.29%
FY14
FY15 Budget
3,029,548
3,014,417
25.01%
12,057,668
25%
27
Indirect Rate Agreement – signed 3/12/15
Actual and Proposed Rates Submitted by IRIS:
FY11
Actual
FY12
Actual
FY13
Actual
DC Office O/H
28.66%
37.38%
DMC Office O/H
15.84%
G&A
23.14%
Indirect Pool
FY14
Proposed
FY14
Actual
FY15-16
Proposed
33.90%
37%
35.69%
36%
18.89%
16.30%
20%
16.62%
19%
22.04%
23.29%
25%
25.01%
25%
Rates offered by NSF (3/4/15) and accepted by IRIS:
Indirect Pool
FY11
Final
FY12
Final
FY13-FY15
Maximum
DC Office O/H
28.66%
37.38%
37%
DMC Office O/H
15.84%
18.89%
20%
G&A
23.14%
21.89%
25%
CAAR – FY12 Indirect Rates
Allowability Determination
FY12 Disallowed Expenses
G&A Travel
$ 7,316
G&A Meetings
$12,127
-----------------------------------------------Total Disallowed in FY12 $19,443
28
Current Rate Agreement
29
UNRESTRICTED FUNDS
Morgan Stanley Portfolio
Unallowable Expenses
30
Revenues
 Awards/Grants
•
Cost-reimbursable awards
- Indirect cost recovery limitations
- Management fees
•
•
Fixed-price awards
Program Income
 Membership Dues
 Interest/Dividends
 Realized/Unrealized Gain on Investments
 Contributions/Donations
31
Unrestricted Funds
• PNC Bank
Account balances as of 3/31/15
• Unrestricted Account
• Innovation Fund Account
$367,409
$125,384
• Morgan Stanley Portfolio
12/31/14 beginning balance =
$2,174,605
Portfolio balance as of 3/31/15 =
$2,224,945
2015 YTD Change (2% increase) =
$50,340
32
Morgan Stanley – IRIS Portfolio Account Balance
12/31/02 – 3/31/15
$2,500,000
$2,224,945
$2,174,605
$2,000,000
4/2/14 transfer to
Morgan Stanley
$802,770
(Subsea Cable)
$1,500,000
5/5/05
Personal Portfolio
inception $965,025
$1,020,240
$1,000,000
$1,206,767
$1,093,462
$823,675
$802,120
$500,000
$1,296,685
$1,124,060
$899,530
$636,185
Feb/Mar 2010
Distributions
<$50,000>
1/19/05 transfer to Morgan
Stanley $107,779 (Iguaçu)
$1,000,913
$1,079,711 $1,039,960
11/22/11
Distribution
<$25,000>
2/28/12
Distribution
<$25,000>
11/02 transfer to Morgan
Stanley = $649,742
2
3
4
5
6
7
8
9
0
1
2
3
4
De
c-0
De
c-0
De
c-0
De
c-0
De
c-0
De
c-0
De
c-0
De
c-0
De
c-1
De
c-1
De
c-1
De
c-1
De
c-1
$0
33
Select UMA Proposal – Portfolio Changes
Implemented August 2013
34
IRIS Unallowable Expenses FY99 - FY14
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
FY99
Lobbying
Alcohol
Other
Severance
Fundraising
Totals
FY99
20,159
3,940
4,631
28,731
% Change from Prior Yr
FY00
FY01
FY02
FY03
FY04
FY00
FY01 FY02 FY03
FY04
48,470 51,033 74,000 81,463 101,000
917 2,819
222 1,588
973
8,911 8,899 9,761 8,753 26,194
FY05
FY06
FY07
FY08
FY09
FY05
91,032
2,176
71,671
FY06
90,742
9,386
67,140
FY07
9,746
6,713
43,895
80,767
FY08
26,793
11,084
42,019
FY09
70,718
8,004
55,543
FY10
85,668
11,569
51,639
FY11
71,505
9,140
33,140
15,029
46,178
1,000
58,298 62,751 83,983 91,804 128,167 164,878 167,268 141,120
102.91%
7.64% 33.83%
9.31%
39.61%
28.64%
FY10
FY11
FY12
FY12
63,000
8,716
32,718
FY13
FY14
FY13
63,000
8,133
37,645
0
0
FY14
78,000
4,834
48,555
10,923
15,491
79,897
149,294
195,054 114,784 104,434 108,778 157,803
1.45% -15.63% -43.38%
86.86%
30.65% -41.15%
-9.02%
4.16%
“Other” includes: investment fees, donations/gifts, staff meals, unallowable travel/meeting and promotional expenses
45.07%
35
FY15 Unallowable Expenses -to-date
7/1/14 - 3/31/15
Expense Description
Lobbying
Investment/Bank Fees
Public Relations
Alcohol
Meetings/meals/travel
Donation/gifts
Penalties/Fees
Misc
GEOICE Cost-Sharing
Fundraising
Total Fiscal Year-to-Date
Amount
$ 58,500
14,582
(18)
3,232
19,734
964
733
3,040
4,149
595
$ 105,510
Penal es/Fees
1%
Dona on/gi s
1%
Misc
3%
GEOICE CostSharing
4%
Fundraising
0%
Mee ngs/meals/
travel
19%
Lobbying
55%
Alcohol
3%
Investment/Bank
Fees
14%
36
Budget & Finance Committee
The IRIS Budget & Finance (B&F) Committee is charged with
assisting and providing recommendations to the Board of
Directors on its financial management responsibilities, and
serving as the liaison between the Board of Directors and
IRIS staff, or external parties, on such issues.
• The Budget & Finance Committee will:
• oversee the indirect pool budgets and development of the
•
•
•
•
annual indirect rate proposal,
oversee IRIS unrestricted funds and its investment portfolio,
accept and review reports provided by external auditors,
recommend the firm that will provide the next year's audit,
review the annual Form 990 (Return of Organization Exempt
from Income Tax) submission.