Financials
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Treasurer's Report
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Teri Switzer,
ALA Treasurer |
ALA’s Fiscal Year (FY) 2006 budget represented a transition year from the ALAction 2005 plan to the ALA Ahead to 2010 plan. The FY 2006 budget was constructed using conservatism, yet allowed for funds to be allocated for research and development of new products. ALA members continue to receive an excellent value for their membership, and the communities in which we serve continue to receive the tools that are needed to become effective advocates for their libraries. The information that follows, along with the accompanying financial spreadsheets, detail the continued financial health of the association.
During the year, ALA’s net assets increased by $2.6 million (9.2%) to a record $30.8 million. Grants and awards increased 70.6% to $759,000. The association’s long-term investments increased by $2.3 million (9.0%) to $26.4 million due to strong market performance, contributions and division transfers.
If we look at the total revenues of all funds, we find that total revenues ended the year at $47.1 million, which is an increase of $3.3 million (7.4%) over FY2005. Meetings and conferences accounted for most of the increase ($2.5 million) as a result of the successful national division conferences by AASL and PLA. Furthermore, the New Orleans 2006 Annual Conference was both a financial ($1.3 million) and emotional success. Revenues also benefited from a surge in advertising revenue ($620,000) during the year after two years of sluggish results. Also contributing were revenues from Grants/Awards ($141,000) and interest income ($138,000).
Total expenses for the year increased by $2.4 million (5.5%) to $45.4 million with the most significant increases occurring in Payroll ($705,000) as vacant positions were filled, Outside Services ($892,000) related to skill sets not currently in-house, Travel ($802,000) related to having the Annual Conference in Chicago in FY2005, Meetings and Conferences ($218,000) and Post Retirement benefits ($188,000). These gains were offset by reductions in Operating expenses ($304,000) and Publications ($145,000). All in all, net revenues were $1.7 million, an increase of $893,000 over FY2005.
The general fund, consisting of such revenue streams as dues, meetings and conferences, publishing, and grants and awards, ended the year with revenues totaling $26,714,000 compared to $26,599,000 on 8-31-05. This represents essentially no increase ($115,000 or 0.4%) during the year. The increase results were primarily from publishing related activities ($338,000) i.e. royalties and advertising in Booklist/Booklinks where revenues increased by $223,000. This does not, however, include the activities of Products & Promotions, which is shown separately from publishing. Interest and dividends represented the only other revenue category that realized any significant gain at $98,000. Dues revenue was relatively flat and came in at $5.2 million, the same as in FY 2005. Revenues were also negatively impacted by declines in meetings and conferences ($98,000), products and promotions ($93,000) and miscellaneous ($138,000). Finally, the general fund operating reserve increased by $625,000 to $1.6 million.
General fund expenses were stable at $26,089,000 down by $8,000 from $26,097,000 last year. Despite expenses being flat there were sizable expense increases in Publishing ($519,000) related to binding, printing and marketing i.e. launch of Booklist Online. Meetings and conferences ($312,000) related expenses increased due to exhibit rental costs at Midwinter (Boston), and products and promotions ($316,000) related to a new method of allocating costs in the reorganization.
Net revenue increased by $123,000 (24.5%) to $625,000. Note that the Midwinter Meeting and the Annual Conference generated $1.9 million in net revenue while Publishing generated net revenues of $1.5 million for a total of $3.4 million to support ALA member related activities. This total is $1.1 million (-23.9%) less than FY2005.
The long-term investment (Endowment) fund showed solid growth, increasing from $24,258,000 to $26,440,000 due to good market performance ($1.5 million), contributions ($498,000), and division transfers ($492,000).
The Plant Fund, which consists of the 40 and 50 East Huron Street buildings and for the first time the Washington Office building, had expenses ($1.1 million) related to cleaning services, insurance, accounting and administrative services and building depreciation ($410,000), which totaled $1,489,000.
ALA’s divisions and round tables positively contributed to the overall revenues and net assets. Division revenues reached $14,421,000 compared to $11,640,000 on 8-31-05, an increase of $2.8 million (23.9%). The increase was primarily due to the two successful national conferences offered by AASL and PLA during the year. Division expenses were $12,781,000 compared to $11,106,000 in FY2005, which is an increase of $1.7 million (15.1%). The increases were due to travel ($538,000) related to conference activity, outside services ($624,000) for program activities and overhead ($726,000) on higher revenue. This resulted in net revenue of $1.7 million, which increased overall division net assets to $10,133,000. As mentioned above, the divisions also transferred a total of $492,000 from their operating fund balances to their long-term investment (endowments) funds and now have $4.2 million (14.6%) invested in the endowment.
Round tables’ revenues were $350,000 compared to $319,000 in the fiscal year ending 8-31-05. Total expenses were $243,000 as compared to $243,000 last year. Each of the round tables is reporting a positive net asset balance at the end of FY2006 for a total net asset balance of $612,000.
During the year there were several issues that adversely affected the profession and presented a major challenge for the association in its effort to provide core services and products. However, ALA’s staff, technology, financial resources, and its dedicated members were well positioned in order to continue to improve the effectiveness of the association’s capacity to deliver programs, products and services to the membership. By following its strategic and financial plans, ALA was able to expend funds to support such activities as the following:
- Advocacy at the local, state, and federal level
- Capital improvements for technology and the building at $1.4 million
- Year six of the Campaign for America’s Libraries
- Continued improvement in electronic balloting
- A 3% compensation increase for staff
- Development of media partnerships that amplify the messages of the Campaign for America's Libraries
- Expanded use and distribution of digital publications
- New product introductions (CHOICE Online, Booklist Online and online Guide to Reference Works)
- Promoting the value of libraries and librarians in the 21st century beyond the library community
- Reaching multi-cultural audiences with pro-library messages
View the current Treasurer's Page.
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
FY2005–2006 (Audited) Results
Total ALA Revenues ($47,088,092)
Total ALA Expenses ($45,374,631)
Total ALA Assets ($59,250,02)
Total ALA Liabilities ($28,437,587)
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
American Library Association Consolidated Statement of Operations and Changes in Net Assets
Year ended August 31, 2006
Download PDF file 17K (preview below)
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Total ALA FY07 Budgeted Revenues
ALA FY07 Budgeted Revenues ($48,717,482)
Dues
Total dues include personal, organizational and special dues for General Fund, Divisions and Roundtables. Dues represent 17.2% of total ALA revenues as compared to 17.9% last year. A dues increase, which is being phased in over three years has resulted in a slight reduction in number of members to 63,720 by the end of FY2007 (8/31/07). The membership marketing effort will include personalized member benefits, special promotion of organizational members, expansion of student chapters and student membership, and joint membership offerings with chapters.
Publishing
Association-wide publishing revenues represent 35.1% of total ALA revenue. Revenue consists of advertising, subscriptions and sale of books and other materials, Strategic direction points toward further development of Booklist Online, an electronic Joblist product, development of ALADirect and completion of RDA, the online manifestation of AACR2. Publishing will support membership growth by addressing member expectations with respect to personalized and customized product offerings.
Products and Promotions (Graphics)
Revenue derived from the promotion of libraries, reading and literacy. Revenue results from the sale of posters, pamphlets, reading materials, bookmarks etc. Graphics produces and promotes Teen Week in conjunction with AASL and other units. This category represents 4.5% of total ALA revenues.
Grants and Awards
Grants and Awards continue to be a be a growing and important revenue category for the association. These Grants and Awards meet significant member and communities needs, programming efforts and support for the Scholarship Bash. Funding represents $473,292 of overhead recovered by the General Fund.Grants account for 7.8% of total ALA revenues.
Royalties
Revenue reflects licensing agreement income based upon contracts between magazines and distributors.
Meetings and Conference
Includes registration, exhibit space rental, meal functions and program advertising, as well as, donations associated with conference activities. Comprises 22.0% of total ALA revenue. ACRL will have a National Conference, along with the ALA Midwinter and Annual Conferences and four national Division institutes are reflected.
Interest Income
Interest and dividends earned on ALA operating cash and long term investments. Income represents 3.1% of total revenue.
Miscellaneous
This category includes revenue for various fees which accounts for 3.3% of the association's income.
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Total ALA FY07 Budgeted Expenses
ALA FY07 Budgeted Expenses ($48,780,667)
Payroll and Related
In addition to salaries and benefits for 290 full time employees, tuition reimbursement and professional memberships are included. Payroll and related expenses account for over 40.8% to total ALA expenses.
Outside Services
This category includes legal and audit fees, outside temporary help, professional consulting services, bank fees, messenger services and outside duplication costs. These costs make up 11.6% of total ALA expenses.
Travel and Related
Transportation, lodging, meals, entertainment and business meetings comprise 4.5% of ALA expenses. Conference travel is included.
Meetings and Conference
Facilities and equipment rental, speakers expenses, awards, security services, bus transportation and program allocations awarded to program units are included which account for 13.2% of total ALA expenses. Conference related staff cost are not included here, but are in the Payroll and related category.
Publication Related
Costs associated with publishing a book or magazine such as, editorial, typesetting, printing, binding, design, paper, and copyright fees are included. Also space and direct advertising, mail list rental, supplies and mail service are included. Staff costs are not included here, but are in the Payroll and related category. Category accounts for 13.1% of association expenditures.
Operating Expenses
Category includes office supplies, periodicals, insurance, small equipment purchases and rental, space rent, telephone and utilities, postage, depreciation, interest, bad debt expense and taxes. Also included is the support to small divisions, subscription equivalent and overhead recovered. Category accounts for 16.9% of total ALA expenses.
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Total Division FY07 Budgeted Revenues
Division FY07 Budgeted Revenues ($12,174,603)
Dues
Dues account for 21.4% of total division revenues. This category includes personal, organizational, special and life member dues transferred from the life member long term investment fund.
Publishing and Related
Publishing revenues represent 42.8% of total division income. Advertising, Sale of Materials and Subscriptions comprise publishing revenues which are net of commissions on advertising income.
Meetings and Conference
Includes registration, exhibit space rental and meal functions. Comprises 23.8% of total division revenues. Division National Conference revenue for ACRL is reflected.
Miscellaneous
Category includes revenue for royalties, misc fees and accounts for 7.7% of the total divisions' income.
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Total Division Expenses
Division FY07 Budgeted Expenses ($13,689,218)
Payroll and Related
In addition to salaries and benefits for 81 full time employees, tuition reimbursement and professional memberships are included. Exempt and non-exempt staff are budgeted to receive an average 3.0% base adjustment and a .5% individual incentive. Payroll and related expenses account for 37.3% of total division expenses.
Outside Services
Professional Services, temporary help, repairs and maintenance on equipment and outside duplication services costs make up 7.9% of total division expenses.
Travel and Related
Transportation, lodging, meals, entertainment and business meetings comprise 4.4% of division expenses. Annual and Midwinter Conference travel for division staff is not included.
Meetings and Conference
Meal functions, facilities and equipment rental, speakers expenses, awards, security services, bus transportation and program allocations awarded to divisons are included which account for 16.8% of total division expenses. Cost in this category are associated with pre and post conferences, seminars, workshops, etc. Staff cost are not included in this category.
Publication Related
Cost associated with publishing periodicals, books and magazines such as, editorial, typesetting, printing, binding, design, paper, and copyright fees are included. Also space and direct advertising, mail list rental, supplies and mail service are included. Staff cost are not included here, but are in the Payroll and related category. Production services costs are included in the operating expenses category. Category accounts for 12.4% of division expenditures.
Operating Expenses
Category includes supplies, periodicals, insurance, small equipment purchases and rental, office rent for the Choice operation, telephone and utilities, postage, production services, depreciation, interest and bad debt expense and taxes. All charge backs to divisions are included in category such as production services, marketing, data processing, reprographics, postage and order billing. Also included is the support small divisions receive. Category accounts for 12.7% of total division expenses.
Overhead
Based on the ALA composite rate of 21.5%, divisions are charged 50% of the rate on publication related revenues or 10.75% and 100% on conference related or 21.5%. Total overhead charges represent 8.3% of total division expenses.
For a hard copy of this report, contact the Public Information Office at pio@ala.org.
Treasurer's Report | FY 2005–2006 (Audited) Results | Consolidated Statement | Total ALA FY07 Budgeted Revenues | Total ALA FY07 Budgeted Expenses |Total Division FY07 Budgeted Revenues | Total Division FY07 Budgeted Expenses | Total Roundtable FY07 Budgeted Revenues | Total Roundtable FY07 Budgeted Expenses
Total Roundtable FY07 Budgeted Revenues ($357,461)
Total Roundtable FY07 Budgeted Expenses ($341,491)
