FY 12/13 Proposed Budget

FY 12/13 Proposed Budget

Board of Directors Meeting

February 1, 2012

Budget Development Process• Planning for FY 12/13 operating budget began in September 2011.

• Formal budget development guidelines were issued on October 17, 2011.

• Emphasis on realistic projections under the current economic situation.

• Initial draft submitted by department heads in November 2011.

• The draft budget was refined as follows: The review process:

• Comparative analysis: proposed budget with FY 10/11 results and FY 11/12 budget projections.

• Detailed review with VP Finance.

• Resulting modifications: proposed and applied.

• Proposed budget presented to AACRAO Board for approval.

Budget Summary

FY 12/13

REVENUE:

DUES $2,466,854 27.5%

NON-DUES $6,510,995

TOTAL REVENUE $8,977,849

TOTAL EXPENSES $8,653,793

EXCESS REVENUE $ 324,056

Dues and Non-dues Revenue ComparisonFY 06/07 – FY 10/11 Actual and FY 11/12 – FY 12/13 Budgeted

Summary of Major Assumptions by Department

Annual Meeting 2013 (San Francisco):

• Registrations: Number of registrants same as FY11/12 budget (Philadelphia)

No increase in base price.

• Exhibit fees: Number of exhibitors same as FY11/12 budget (Philadelphia)

No increase in base price.

Government Relations:

• No increase in expenditures above 2%.

Communications:

• No increase in expenditures above 2%.

Summary of Major Assumptions by Department (continued)

General & Administration:

• Individual/Institutional dues:Membership revenue same as FY11/12 budget.

• Corporate dues:

Corporate membership revenue same as FY11/12 budget.

• Includes 3% salary pool.

Information Technology:

• No increase in expenditures over 2%.

Summary of Major Assumptions by Department (continued)

Governance:

• 3% increase in expenditures over FY11/12 budget.

Meetings and Workshops:

• SEM 2012 (Orlando): Registrations: Number of registrants same as FY11/12 budget (San Diego)

No increase in base price.

Exhibit fees: Number of exhibitors same as FY11/12 budget (San Diego)

No increase in base price.

• Technology Conference 2013 (Tucson): Registrations: 7% decrease in # of registrants from FY11/12 budget (Chicago)

No increase in base price.

Exhibit fees: 8% increase in # of exhibitors over FY11/12 budget (Chicago)

No increase in price.

Summary of Major Assumptions by Department (continued)

Meetings and Workshops (continued):

• Transfer Conference 2013 (Tucson): Registrations: Number of registrants same as FY11/12 budget (Chicago)

No increase in base price.

Exhibit fees: Number of exhibitors same as FY11/12 budget (Chicago)

No increase in base price.

Technology and Transfer conferences have been co-located for the first time. Budget reflects assumption without prior data.

• Online Courses:

Registrations: projecting 5% decrease in revenue over FY11/12 budget

• Webinars:

Registrations: projecting 25% decrease in revenue from FY11/12 budget

Member and Customer services: Jobs-on-line: projecting 13% increase in revenue from FY 11/12 budget.

Increase in fees for non-members at 20% above member rate.

Summary of Major Assumptions by Department (continued)

IES:

• Service fees: projection 6% increase in evaluation revenue from FY11/12 budget.

• Increase expected based on enhanced timeliness, customer responsiveness, marketing efforts and development of growth opportunities.

• Consulting expense: budgeted at 17% of revenue.

AACRAO Consulting:

• Service fees: projecting 20% increase in revenue from FY 11/12 budget

• Projection based on increase in marketing efforts and growth opportunities.

• Consulting expense: budgeted at 36% of revenue.

Summary of Major Assumptions by Department (continued)

Publications:

• Publication sales: projecting 8% decrease in publication sales from FY11/12 budget. Three new publications that are in the pipeline.

• Edge: projecting 2% increase in revenue over FY11/12 budget; increase based on higher demand.

Operating Revenue & Expenses FY 05/06 – FY 10/11 Actual and FY 11/12 – FY 12/13 Budgeted

2005 2006 2007 2008 2009 2010 2011FY 11/12Budget

FY 12/13Budget

(Proposed)Total Revenues 5,966,226 7,036,458 7,142,788 7,801,667 7,303,307 7,718,065 8,459,691 8,731,789 8,977,849Total Expenses 5,307,950 6,283,851 7,097,602 7,070,276 6,768,767 6,921,257 7,770,013 8,470,634 8,653,793

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Operating Revenue & Expenses FY 90/91 – FY 10/11 Actual and FY 11/12 – FY 12/13 Budgeted

Operating RatioFY 90/91 – FY 10/11 Actual and FY 11/12 – FY 12/13 Budgeted

Revenue Allocation by Program

Expense breakdown by line item