Finance Presentation

1
Introduction

• Topics
• Fiscal Management Budgeting
• Sources of Division Income
• The Societys Finances

2
Fiscal Management

• Planning / Budgeting

3
Planning Budgeting

• Program Objectives

Fiscal Objectives
Fiscal Reality
Program Success !!
4
Budget

• Zero-Based Budgeting (every 3 years)
• Inflationary Budgeting
• No Budget Budget
• After Action Analysis

5
Your Requirements

• Projected budget due to executive committee prior
  to Fall National Meeting
• Compare 1st 6 months (YTD) expenditures with
  current years approved budget prior to approving
  next years budget

6
Preliminary Budget
7
Preliminary Revenue Projections

• What are the various sources of revenues ?
• What are the saleable items within your division
  ?
• What is the per unit price of these items ?
• What are the annual sales projections for each ?
• Are there any historical factors that impact
  these projections ?

8
Preliminary Expense Projections

• What are the direct costs of producing items for
  sale ?
• What travel will be required this year ?
• What costs can be associated with the National
  Meetings ?
• Will your division be distributing any awards ?
• What are your estimated administrative costs ?

9
Preliminary Budget Sensitivity Analysis
How will changes in the following projections
affect your net ?

• Contributions
• Number of members
• Meeting Costs
• Unit Sales
• Miscellaneous Revenues Expenses

10
Preliminary Budget Review

• Are there reasons to believe there will be
  dramatic changes in any of your budget line items
  based on upcoming events, recent trends, or other
  current information?
• Are any of your revenue items overly aggressive
  or your expense items overly conservative ?

11
Budget Review

• Finalize financial requirements
• Document the assumptions

12
Budget vs. Actual

• First 6 months actual results compared against
  budget at Fall National Meeting
• This mid-year process can give you time to
  address
• Shortfalls in projected revenue
• Higher than expected expenses
• Unexpected expenses

13
Planning Budgeting

• Program Objectives

Fiscal Objectives
Fiscal Reality
Program Success !!
14
Fiscal Management

• Planning / Budgeting
• Performance Measures

15
Fiscal Management
Performance Measures

• Operating Ratio
• Liquidity Ratio
• Dues Ratio

16
Fiscal Management
Operating Ratio

• Total Income for the Year
• Total Expenditures for the Year

17
Operating Ratio
18
Fiscal Management
Liquidity Ratio

• Current Assets (Cash Investments)
• Total Expenditures for the Year

19
Liquidity Ratio
20
Fiscal Management
Dues Ratio

• Yearly Dues Income
• Total Expenditures for the Year

21
Dues Ratio
22
Agenda

• Topics
• Fiscal Management Budgeting
• Sources of Division Income
• The Societys Finances

23
Sources Of Division Income

• Allocations
• Dues
• Contributions
• Board Appropriated Funds
• Grants
• Investments
• Other

24
Sources Of Division Income

• Allocations

25
Sources of Division Income

• Bylaw VIII, Sec. 6. (a, b c)
• Annual Allotment for each Division and member
  (Funded from the Dues Pool)
• Annual Allotments for participation and
  programming at the National Meetings (Funded from
  National Meeting operations)
• Basis for 2002 Allocations
• 2001 Meeting Statistics
• 2000 Membership Figures

26
Sources of Division Income

• Division and Member Allotments -- 2002 Values
• Base amount (601.00)
• Per dues paying member amount (1.19)

27
Sources Of Division Income
National Meeting Allotment

• Dues Allotment X 2
• National Meeting Allotment

28
Sources Of Division Income

• Allocations
• Dues

29
Sources Of Division Income

• Division Dues
• Form due to Divisional Activities Office by April
  30
• Increases voted on at the Spring Executive
  Committee Meeting

30
Requirements for theReceipt of Dues

• Projected budget due to executive committee prior
  to Fall National Meeting

31
Sources Of Division Income

• Allocations
• Dues
• Contributions

32
Sources Of Division Income

• Substantiation Disclosure Requirements
• Amount of cash contribution
• Non cash - description of property
• Statement of whether goods and/or services are
  provided
• Description and estimate of the fair market value
  of goods and/or services

33
Sources Of Division Income

• Allocations
• Dues
• Contributions
• Board Appropriated Funds

34
Sources Of Division Income

• 300,000 to be spent over a two year period
• 150,000 in 2001
• 150,000 in 2002
• Contact Divisional Activities to request funding
• By-law petition to be presented in Orlando

35
Sources Of Division Income

• Allocations
• Dues
• Contributions
• Board Appropriated Funds
• Grants

36
Sources Of Division Income

• Grants
• Grant Application
• Sources of Funding
• Reporting Requirements
• Compliance
• Audit

37
Sources Of Division Income

• Grant Applications
• Division, not ACS, identifies revenue sources
• Division submits grant in divisions name
• In some cases, ACS accepts award and division is
  sub-recipient

38
Sources Of Division Income

• Grant Opportunities
• The Federal Register
• Catalogue of Federal Domestic Assistance
• Agency Program Announcements
• Agency Handouts
• Agency Contacts
• Commercial Sources

39
Sources Of Division Income

• Commercial Sources
• Federal Grants Contracts Weekly
• Federal Assistance Monitor
• Federal Funding Guide
• Federal Research Report
• Directory of Research Grants
• Health Grants and Contracts Weekly
• Taft Foundation Reporter

40
Grant Guidelines as Set Forth in OMB Circulars

• OMB CIRCULAR A-110
• Provides Consistency and Uniformity in Grant
  Administration Among Federal Agencies
• OMB CIRCULAR A-122
• Establishes Cost Principles for Non-Profit
  Organizations
• OMB CIRCULAR A-133
• Sets Standards Among Federal Agencies for Audits
  of States, Local Governments, and Non-Profit
  Organizations

41
Sources Of Division Income

• Grant Reimbursement Process
• SF270
• Advance Payment
• Reimbursement

42
Sources Of Division Income

• Grant Reporting Requirements
• Financial Reporting
• Financial Status Report
• Technical Reporting
• Annual Progress Reports
• Final Project Reports
• Agency Specific Reports

43
Sources Of Division Income

• Audit Compliance
• Annual independent audit for awards of 300,000
  or more
• Must comply with US OMB Circular A-133 - Audits
  of states, local governments, and non-profit
  organizations

44
Sources Of Division Income

• Allocations
• Dues
• Contributions
• Board Appropriated Funds
• Grants
• Investments

45
Sources Of Division Income

• Allocations
• Dues
• Contributions
• Board Appropriated Funds
• Grants
• Investments
• Other

46
Sources Of Division Income

• Other Funding Opportunities
• ACS Corporation Associates
• Grants for Industrial Programming at National
  Meetings
• Petroleum Research Fund Grants
• Administered by ACS
• Committee On Science

47
Sources Of Division Income

• Other Miscellaneous Income
• Publications
• Meetings
• Other Activities

48
Agenda

• Topics
• Fiscal Management Budgeting
• Sources of Division Income
• The Societys Finances

49
Finance Revisited

• A little bit about the
• Societys Organization
• and Finances

50
The Societys Finances
Chemical Abstract Service Publications Science
Information International, Ltd. Hampden Data
Services, Ltd.
Directors Initiatives Self-Sustaining Society
Supported Programs ACS Secretarys Programs Dues
Revenue and Assessments
Directors Initiatives Self-Sustaining Society
Supported Programs Externally Sponsored Programs
Belmont Conference Center Centcom, LTD. Fund
Raising Green Chemistry Institute Web Programs
Governance Officers Administration (IT, HR,
Building) Finance
51
Relative Revenue Expenses2002 Approved Budget
52
Sources and Uses of Funds2002 Approved Budget

• Information Services
• Chemical Abstracts Service
• Publications
• Subsidiaries
• Hampden Data Services, Ltd.
• Science Information International
• 25,182,000

Dues Revenues Assessments 3,977,000
Investments 7,027,000
Education Programs (7,678,000)
Membership Programs (17,015,000)
Net from Operations (2,000,000)
Legislative Government Affairs (3,266,000)
Communications (4,558,000)

• Other Programs
• Other Activities (w/o Investments))
• Unallocated Indirect Costs
• (4,360,000)

53
Topics Discussed

• Topics
• Fiscal Management Budgeting
• Sources of Division Income
• The Societys Finances