BARC Report to the Executive Board
2005-2006 EBD #3.3.1
Budget Analysis and Review Committee
Report to the Executive Board
2006 Midwinter Meeting
January 19–23, 2006
It is my pleasure to report on the Budget Analysis and Review Committee (BARC) meeting of January 19–23 in San Antonio.
The following topics were discussed:
- Discussion of 2006 Scholarship Bash in New Orleans
- ACRL/CHOICE proposal for Building Purchase Feasibility Study
- Membership Dues increase
- Divisional Representation on BARC
- Staff Recruitment Report update
- FY 2005 General Financial Results
- FY 2006 Budget Update
- FY 2007 Budget Instructions
- FY 2007 President’s Budget
Activities:
- ALA Finances 101 also known as Financial Planning Seminar
- Planning and Budget Assembly
- BARC Liaison Program
Recommendations:
- Communication Plan
- Research and Development Plan for Publishing, Conference, Membership Dues and other revenue generating strategies
BARC welcomed Joan Claffey, the new Development Office Director. Executive Director, Keith Michael Fiels, noted that the Development Office business plan will be reviewed soon.
2006 Scholarship Bash in New Orleans:
Conference Services Executive Director, Deidre Ross, and associate Amy McGuigan, asked BARC to endorse the Scholarship Bash Committee’s recommendation to use all or a portion of the Bash procceds for a donation to the Hurricane Katrina Relief fund established to assist libraries affected by the Hurricane, as proposed by the primary Bash sponsor, ProQuest. There is currently a surplus of scholarship funds; this reserve is intended to supplement any scholarship needs should one of the Bash activities fail to generate the sufficient funds required by Spectrum and related scholarships. This is an informational piece only—direction was requested.
After consultation with Finance staff, BARC directed Ms. Ross to work with the Scholarship Bash Committee to ensure that the full allocation of funds required for the scholarship funding be derived from the 2006 Scholarship Bash and that any remaining proceeds could be used toward Hurricane Katrina relief. This will ensure that the Scholarship Bash remain intact in its purpose while satisfying the immediate need based on this regional emergency. Bash ticket sales are strong and currently indicate this dual purpose.
ACRL/CHOICE Request for Feasibility Study:
Based on the Washington Office model, and the need for a new home for CHOICE staff, ACRL/CHOICE proposed a $25,000 feasibility study to review the appropriateness and engineering/architectural build out needs of Acheson House, a Weslayan University property under consideration for relocation of the CHOICE offices. Several factors related to the purchase are in process of negotiation between ACRL/CHOICE and ALA management. The resolution of these issues will be brought to the Executive Board upon completion.
ACTION ITEM:
BARC recommends to F & A the approval of a $25,000 feasibility study to review the appropriateness and buildout/structural needs of Acheson House for the possible relocation of the CHOICE offices.
Membership Dues Increase Update:
Executive Director Fiels and Membership Committee Chair, Marcia Boosinger, provided an update to the Membership Dues increase plan, indicating that the Membership Committee approved the draft resolution regarding an increase in personal membership dues. Talking points were distributed and liaisons will take these comments to their respective units. There is clear evidence that there has been a delay in services and projects because of lack of funds.
Research and Development Plans:
BARC and F & A discussed the need to re-invest in our traditional revenue generating activities, and the need to maximize returns based on current and future best practices. Discussion included the need for research and development needs for Publishing, Membership and Conference Services, two other key revenue generating operations.
BARC encourages ALA Management to develop Research and Development proposals to include Publishing, Conference Services, Membership and revenue generating activities to prioritize efforts associated with ALA Ahead to 2010 and expand these revenues. Further, BARC recommends that ALA Management examine means to integrate Research and Development funding in the budget cycle as appropriate.
Division Representation on BARC:
Per the direction of the Executive Board, BARC discussed the addition of two new members representing the divisions. Mary Ghikas informed BARC that there is already a selection mechanism model in place as the Division Presidents elect Conference Committee division representatives at their Sunday Breakfast at Midwinter. The Committee on Organization reviewed this at Midwinter moved this forward to Council. Selection of the divisional representatives, outside of the Council process was a strong prohibitive factor. Some councilors at the Council Forum were quite vocal in their opposition to this process and desired more information, indicating that they wanted more input in the process and the decision. Some desired to review the composition of BARC itself, indicating that expansion might still be desirable, as at-large members.
Participation is one of the best ways to learn comprehensively about the organization from a global perspective. BARC will continue to work with COO and appropriate ALA units as needed.
The BARC Chair will provide a comprehensive orientation to all new and returning members and will work with Finance staff to ensure an adjustment to the BARC budget beginning with the 2006 Annual Conference to address the additional financial need as needed.
Recruitment Report Update:
Human Resource Director, Dorothy Ragsdale, provided an update on the effort to fill numerous positions which would focus on moving the Association towards fulfillment of the projects associated with ALA Ahead to 2010. ALA is now working with a number of workstudy and other types of interns. These students are often paid in full or partially by the university. Ms. Ragsdale also highlighted BARC #16.3 for information.
FY 2005 General Financial Results:
Based on the FY 2005 General Financial Results, AED Finance Greg Calloway discussed Management’s recommendation to devote the approximately $180,000 in net revenue balance devoted to 2010 projects to be divided in this manner:
- $45,000 to continuing education projects
- $45,000 to Publishing to jumpstart projects
- $90,000 for projects for collaborative investing among all units (e.g. membership recruitment, bilingual projects, other initial 2010 projects to generate revenue)
FY 2006 Budget Update:
While revenues are currently 4% less than budget in the General Fund, management is not projecting a revenue shortfall at this time. Projections will be revisited in the Spring based upon February year-to-date results. Expenses are 14% less than budget and salary savings are nearly $700,000 year-to-date.
FY 2007 Budget Instructions:
Guidelines and budget assumptions have been distributed to staff consisting of a zero percent increase over the current FY 2006 budget. The Spring budget is being prepared without a dues increase and will be modified for the Annual Conference based on the result of the Spring ballot.
FY 2007 Presidents Budget—BARC #22.4:
President-Elect Leslie Burger and Elizabeth Dreazen met with BARC and presented for review the 2007 President’s budget. The details of the Presidential Initiative, “Libraries Transform Communities,” merges seamlessly with the 2010 strategic plan with an emphasis on advocacy and leadership development. The budget of $100,000 is spread across approximately 5 major projects and 4 smaller ones. Will be looking to address issues surrounding younger librarians and develop as broad a base as possible with involvement from the divisions, NMRT, IFLA and Spectrum.
ACTION ITEM:
BARC recommends to F & A the approval of the President-Elect’s proposed budget for 2006–07 as presented in the document.
ALA Finances 101:
The Financial Planning Seminar has now been renamed ALA Finances 101. The package of information was comprehensive and well-designed by BARC and staff. Topics included: a financial primer of ALA terms, Financial Principles and Realities (one ALA), a financial environment overview, Endowment Fund Principles, and breakout for the Divisions (operating agreement) and Round Tables (key principles). Lower than expected turnout might be due to a change in time of day and venue. All documents provided to members will be made available on the Treasurer’s website.
Planning and Budget Assembly:
President-elect, Leslie Burger, introduced her presidential initiatives, the need for additional revenue streams, and collectively, participants identified potential revenue enhancements. Significant suggestions for revenue generation were discussed. This information will be communicated for BARC dissemination to the Executive Board and related units for their consideration. Documents and notes will be available on the Treasurer’s website.
Divisional Leadership/BARC Joint Meeting:
The divisional leadership identified four topics: the proposed membership dues increase, divisional representation on BARC, the Operating Agreement - overhead rate, and the Endowment Fund (also known as the Long-Term Investment) Management Rate. A request for clarification of the overhead rate will be formulated by Finance staff and distributed through Mary Ghikas.
BARC Liaisons:
A comprehensive effort was made for each BARC liaison to contact their respective Divisions, Round Tables, Units and Offices and focused on the Membership Dues increase, Division Representation on BARC and to engage member leaders as an advocate.
Communication Plan:
This suggestion for improving communication was discussed at BARC:
Unanticipated plans for significant revenue generation and expenses in between conferences and Spring and Winter meetings can and should be regularly communicated to the BARC Chair for informational purposes, to ensure optimal communication and a careful consideration of the issues for the best outcomes.
Financial Education and Communication Strategies:
Each conference offers many opportunities for ALA’s financial leadership to educate and inform member leaders in several venues. This process increases the communication and can make the finances of the Association more transparent and create more awareness and better understanding of what is a complex and somewhat daunting structure. There are signs of collaboration and cooperative planning throughout the organization. Enhanced communication at all levels is critical to the ongoing success and positive contributions of the many facets that make the American Library Association a strong, viable organization with a vision for the future.
BARC would like to acknowledge the exemplary work of Greg Calloway, Keith Brown, Sandy Lee, Elaine Klimek and the finance and accounting staff as well as Keith Michael Fiels, Mary Ghikas, and the late Gerald Hodges. On behalf of BARC, it continues to be a pleasure to work towards the financial health of the American Library Association.
Respectfully submitted:
Francis Buckley
Rodney Hersberger
Marilyn Hinshaw
James Rettig
Raymond Santiago
Teri Switzer, Treasurer
Patricia (Patty) Wong, Chair
|
