Budget and Funding
Budget & Finance Committee
The ALCTS Budget & Finance Committee has oversight responsibilities for ALCTS' financial health. The Budget & Finance Committee reviews and recommends the budget to the ALCTS Board of Directors. The chair of the committee is a voting member of the ALCTS board.
Budget and Finance Committee page | B&F Committee Roster
ALCTS Financial Plan
The Budget & Finance Committee develops a financial plan for the association. The plan includes the financial goals and objectives for ALCTS over no more than a five-year period.
Financial Plan page
ALA Policy and Budget Oversight
The fiscal affairs of ALCTS are governed by: ALA Bylaws, Article VI. Divisions; and ALA Policy 6.4.1, Policies of the American Library Association in Relation to its Membership Divisions (the Operating Agreement). Both documents may be found in the ALA Handbook of Organization and on the ALA Web site.
The Treasurer is the chief elected financial officer of ALA. | Treasurer's Web page
The Budget Analysis and Review Committee (BARC), a standing committee of the ALA Council, is the committee that has oversight responsibilities for the entire ALA budget, including the budgets of the Divisions.
BARC's charge reads:
"To review the proposed budget, as forwarded by the ALA Executive Board, in the context of the ALA strategic plan, annual priorities and budget assumptions; to review the financial performance of the Association and the budget impact of potential actions of ALA Council; to make budget recommendations to the ALA Executive Board and to report to council regarding budget analysis and process."
Budget Overview
ALCTS generates revenue from a variety of sources, including: membership dues, subscriptions to LRTS, royalties and sales of publications, sponsorships; advertising; preconference registration fees; and continuing education registration fees. This revenue supports the operations, products, programs, and services of ALCTS. Expenditures for ALCTS include: staff and office operations; production of publications, including LRTS and ANO; continuing education including programs and preconferences; governance, including the Board, Executive Committee, and Division committees, Sections, and CRG; Annual Conference and Midwinter Meeting; and awards. The ALCTS budget is reviewed and monitored by the Budget and Finance Committee for recommendation to the ALCTS Board of Directors.
Budget preparation begins in November when the ALA Budget Office sends out the budget preparation information for the next fiscal year. The ALCTS Executive Director working with the chair of the Budget and Finance Committee prepares a preliminary budget for review by the Budget and Finance Committee.
The preliminary budget is approved at Midwinter for the next fiscal year. This approval is based on the advice and recommendations of the Budget and Finance Committee and the Executive Director. Once the Board approves the preliminary budget, that budget is forwarded to BARC through the ALA Budget Office for review and inclusion in the overall ALA budget. The ALA Executive Board approves the final ALA budget.
Additions and adjustments to the budget are made during the spring. The final budget is approved at the Annual Conference immediately prior to the beginning of the next fiscal year.
Fiscal year
ALCTS' fiscal year is the same as the ALA fiscal year: September 1 to August 31.
Glossary of ALA Accounting Terms
Accrual Accounting: ALA accounting method. Accounting which recognizes expenses in the accounting period that the expenses is incurred. Revenues are recognized when the event is held. Example: Conference to be held in FY 2006. Expenses for the conference that are incur in FY 2005 and will be recognized in FY 2005. Registration that is received in FY 2005 will be deferred until the conference takes place in FY 2006. That is when the registration, exhibit and other income is recognized
Budgetary Ceiling: The uppermost Limit that a unit can spend during a given fiscal year. Includes Unexpended net asset balances from the previous budget year plus Anticipated revenues for the upcoming fiscal year. Example: $206,625 FY 2004 Unit Net Asset Balance + $632,972 FY 2005 Anticipate Revenue = $839,597 FY 2005 Budgetary Ceiling
Division funds: ALA's category of funds devoted to maintaining the financial activities of ALA divisions.
Deferred revenues: cash received for membership dues, periodical subscriptions, registration fees and similar sources that have not been earned by providing the related services or periodical. Deferred Revenue. Deferred Revenue is revenue received in cash by an organization in exchange for promises to perform services or to furnish goods at some future date. This is considered a Liability until the goods and services have been provided. Examples-Dues and Subscriptions, Conference Fees. ALA recognizes a portion (a percentage) of the dues and subscriptions as revenue as services are used
Fund accounting: a method of accounting that ensures the observance of limitations and restrictions placed on use of the financial resources. Fund balance: see "Reserve"
General Funds: funds devoted to general operations of the Association excluding Division, Round Table, Special Activity, Plant and Endowment Funds.
Long-term investment funds: a category of funds devoted to maintaining the financial transactions of contributions received from benefactors in accordance with the terms of the contribution.
Net Assets: Represents the carry forward of net revenues in a Division or Round Table Sometimes referred to as Fund Balance. Excess revenue over expenses. Divisions and Round Tables are the only ALA units that can carry forward or use net asset balances in the future
Operating Funds: all funds other than plant funds and endowment funds.
Overhead: expenses that cannot, by their nature, be specifically related to an activity. Also called indirect expenses or costs.
Overhead study: an annual ALA accounting report which allocates indirect costs (i.e. costs which by their nature cannot be directly attributed to an activity) to specific ALA activities. The report allocates these indirect costs in accordance with a set of assumptions, which have been approved.
Plant Fund: includes combined accounts of the Headquarters buildings and Huron Plaza building.
Reserve: represents the fund's (division, activity, etc.) share of the asset and liabilities of ALA. The total of all fund balances represents ALA's financial net worth.
Restricted Endowment Funds: ALA resources that are limited by the donor as to their use.
Calendar
ALA Budget Process and Time Line
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