2014 - 2015 BARC #5.1EBD #14.6

ALA American Library Association

Results of OperationsFY 2015 - November 2014 Financials

PagesI Total ALA

A Statement of Revenues and Expenses 1 - 4B Statement of Financial Position 5 - 9

II General FundA Statement of Revenues and Expenses by Department 10 - 11B Statement of Revenues and Expenses by Activity 12 - 14

III Department CommentariesA Publishing 15 - 19B Member Programs and Services 20 - 22C Communications and Member Relations 23 - 24D Executive Office/Governance Office 25E Washington Office 26

IV Division Statement of Revenues and Expenses 27 - 31

V Round Table Statement of Revenues and Expenses 32

@ YOUR LIBRARY

November 2014Executive Summary

The financial results represent three months of activity, which were electronically issued to unit managers on December 16, 2014.This commentary highlights actual revenue and expense results as compared to the approved budget including highlights of key financial indicators.

The AED, Finance, with the assistance of the Controller, coordinates a summary of key highlights and report to the Executive Directorand the Senior Management Group. The following financial summaries highlight variances against budget as well as year-to-datecomparison of key indicators.

I A. TOTAL ALA (ALL COMBINED FUNDS) Statement of Revenues and Expenses November 30, 2014

TOTAL ALA Year-To-Date Year-To-Date Year-To-Date Prior Year Change

(ALL COMBINED FUNDS) Actual Budget Variance ActualNov 30, 2014 Nov 30, 2014 Nov 30, 2014 Nov 30, 2013 FY15 - FY 14

Total Revenues 8,843,324 9,462,283 (618,959) 9,471,560 (628,236)Total Expenses 9,867,575 10,930,195 1,062,620 10,349,028 481,453Net Rev(Exp) (1,024,251) (1,467,912) 443,661 (877,468) (146,783)

Revenue Total ALA revenue is $618,959 less than FY15 budget, $628,236 less than November 2013.This is primarily due to timing of Grant expenditures.

Expenses Total ALA expenses are $1,062,620 less than budget, $481,453 less than November 2013 due to timing of Divisionsand Grant actual expenditures against budget.

Net Revenue and Expenses from OperationsNet Revenue(Expense) at November 2014 is ($1,024,251) which is $443,661 better than budgeted net expenses of ($1,467,912) primarily due to savings in Grants and Divisions expenses under budget. Total ALA net revenues from operations excludes the Technology Reserve expenses of $90,581 and $716,986 of income from both short-term and Long-term investment activities. Page 1

I A. TOTAL ALA (ALL COMBINED FUNDS) Statement of Revenues and Expenses November 30, 2014

Year-To-Date Year-To-Date Year-To-Date Prior Year Change

REVENUES BY FUND Actual Budget Variance ActualNov 30, 2014 Nov 30, 2014 Nov 30, 2014 Nov 30, 2013 FY15 - FY 14

General Fund 4,947,533 5,056,879 (109,346) 4,845,685 101,848Division 2,838,607 2,663,440 175,167 3,640,788 (802,181)Round Table 52,455 63,582 (11,127) 60,628 (8,173)Grants and Awards 838,751 1,407,122 (568,371) 822,674 16,077Long-Term Investment 165,977 271,259 (105,282) 101,785 64,192Total 8,843,324 9,462,283 (618,959) 9,471,560 (628,236)

General FundThe General Fund revenue is $109,346 less than budget due primarily to lower advertising, subscription and interest income.

DivisionDivision revenue is $175,167 more than budget due to higher CHOICE revenue (Webinar, Advertising and Royalties) and ALSC seals sales revenue, offset by lower AASL revenue (publication related, conference and donations). FY15 revenues are $802,181 lower than November 2013 due to two division conferences held in FY14.

Grants and AwardsGrants and Awards generated $568,371 less than budget due to timing of grant program activity.

Long-Term InvestmentInvestment interest and dividends income is $105,282 less than budget, $64,192 more than November 2013due to higher investment balance.

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I A TOTAL ALA (ALL COMBINED FUNDS) Statement of Revenues and Expenses November 30, 2014

Year-To-Date Year-To-Date Year-To-Date Prior Year ChangeEXPENSES BY FUND Actual Budget Variance Actual

Nov 30, 2014 Nov 30, 2014 Nov 30, 2014 Nov 30, 2013 FY15 - FY 14General Fund 5,870,594 5,845,167 (25,427) 5,805,690 (64,904)Division 3,061,838 3,502,063 440,225 3,644,262 582,424Round Table 18,448 52,079 33,631 19,714 1,266Grants and Awards 839,430 1,296,265 456,835 822,674 (16,756)Long-Term Investment 77,265 234,622 157,357 56,687 (20,578)Total 9,867,575 10,930,195 1,062,620 10,349,028 481,453

Total ALA (All Combined Funds)Total expenses are $1,062,620 less than budget, $481,453 less than November 2013.Professional services expenses are $220,319 less than budget and $200,816 less than November 2013.Meetings and conferences expenses are $614,638 less than budget, publication related expenses are $109,543 less than budget, and operating expenses are $375,610 less than budget.This is due to timing of the budgeted expenses against actual expenses.

General FundTotal expenses are $25,427 less than budget, consistent with last year-to-date expenses. Payroll related expenses are $189,577 less than FY15 budget due to lower salaries and health insurance expenses which includes $40,000 transfer from 2013 BC/BS refund.Overhead recovered is $333,163 less than budget due to timing of Grant activities and timing of budget allocation.

Division FundDivision expenses are $440,225 less than budget mainly due to lower professional services expenses ($98,725) and lower operating expenses ($108,480) than budget. Meetings and Conferences expenses are $362,205 less than budgetdue to the timing of budgeted expenses against actual expenses. Payroll related expenses are $186,535 more thanbudget, $61,766 more than November 2013.

Long-Term InvestmentLong-Term Investment is $157,357 less than budget due to timing of awards disbursement.

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I A. TOTAL ALA (ALL COMBINED FUNDS) Net Revenues From operations November 30, 2014

Year-To-Date Year-To-Date Year-To-Date Prior Year ChangeNet Revenues(Expenses) Actual Budget Variance Actual

Nov 30, 2014 Nov 30, 2014 Nov 30, 2014 Nov 30, 2013 FY15 - FY 14General Fund (923,061) (788,288) (134,773) (960,005) 36,944Division (223,231) (838,623) 615,392 (3,474) (219,757)Round Table 34,007 11,503 22,504 40,914 (6,907)Grants and Awards (679) 110,858 (111,536) (0) (678)Long-Term Investment 88,712 36,638 52,075 45,098 43,615Total (1,024,251) (1,467,912) 443,661 (877,468) (146,783)

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I B. TOTAL ALA STATEMENT OF FINANCIAL POSITION November 30, 2014

TOTAL ALA November 30, 2014 November, 2013 Change Change %Total Assets $82,390,316 $78,036,468 $4,353,848 5.6%Total Liabilities $43,996,467 $45,511,227 ($1,514,760) -3.3%Net Assets $38,393,849 $32,525,241 $5,868,608 18.0%

Total AssetsTotal assets are $4,353,848 higher than November 2013 due to higher value of the Long-Term investment, higher Short-Term Investment balance, higher Accounts Receivable, offset by amortization of Intangible Assets.The Endowment balance at November 2014 is $40,989,191, which is $3,917,591 higher than November 2013 balance.

Total Liabilities(Includes current and non-current obligations)Total liabilities are $1,514,760 less than November 2013 due to; 1) lower post-retirement liability.2) lower long-term debt - Repayment of Long-Term debt was made on July 1st in the amount of $647,500.3) lower accounts payable balance due to controlled payments of expenses.

Net Asset BalanceTotal ALA Net Asset Balance is $38,393,849 which is $5,868,608 more than November 2013.

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I B. TOTAL ALA STATEMENT OF FINANCIAL POSITION November 30, 2014

ASSETS November 30, 2014 November, 2013 Change Change %Cash 4,136,956 4,136,032 924 0.0%Short-Term Investment 14,614,608 13,205,126 1,409,482 10.7%Accounts Receivable, Net 2,861,777 2,667,892 193,885 7.3%Grants Receivable 365,561 516,006 (150,445) -29.2%Inventories, Net 1,849,470 1,900,366 (50,896) -2.7%Prepaid Exp, GW, Intangibles 5,176,592 5,566,164 (389,572) -7.0%Fixed Assets, Net 12,397,535 12,974,655 (577,120) -4.4%Long-Term Investment 40,989,191 37,071,600 3,917,591 10.6%Total Assets 82,390,316 78,036,468 4,353,848 5.6%

Cash - Includes all ALA operating cash accountsCash balance at November 2014 is at net of transfers made to short-term investment account.

Short-Term Investment

$850,000 funds set aside from operating cash account to meet long-term debt obligation (JPMorgan loan).

Accounts Receivable, Net: Trade Accounts Receivables and Miscellaneous receivables, net of reserves for bad debts.Net Accounts Receivable increased by $193,671 from $2,667,892 to $2,861,563 which includes outstandingreceivable amount of $112,359 from Freedom To Read Foundation.

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The investment balance at November 2014 is $14,614,608, $1,409,482 more than November 2013. The balance includes the

Grants ReceivableGrants Receivables are created where expenditures are incurred and exceeded the timing of receipts.

Inventories, NetPurchased items on hand to be sold net of reserves-includes books and graphics.Net inventories decreased by $50,896 from $1,987,641 to $1,849,470.

Prepaid Expenses

Prepaid are lower compared to last year due to the amortization of Intangible Assets.The cumulative amortization expense of Intangible Assets as of November 2014 is $1,755,468.The Intangible Assets at net of amortization is $2,114,532.

Fixed AssetsTangible assets used in business to be expensed over its useful life.Fixed Assets are lower than last year by $577,120.

Long-Term InvestmentThe Long-Term Investment increased by $3,917,591 from $37,071,600 at November 2013 to $40,989,191 at November 2014 due strong market performance. The year-to-date interest earned on the Long-Term Investment is $165,977, net of $110,135 transfer to operating account. The Endowment Fund has combined realized/unrealized gain of $529,396 as of November 2014.The Endowment fund balance increased by $972,000 due to Margaret Alexander Edward Trust donation.

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There are additional obsolete inventories to be destroyed in FY15. As a result, the inventory reserve has been increased by $305,000.

Paid goods and services prior to the actual rendering of services and goods received, Goodwill and Intangible Assets.

I B. TOTAL ALA STATEMENT OF FINANCIAL POSITION November 30, 2014

LIABILITIES November 30, 2014 November, 2013 Change Change %Current Portion, L-T Debt 723,214 1,312,577 (589,363) -44.9%Accounts Payable 2,192,050 2,174,124 17,926 0.8%Accrued Payroll 17,237,820 17,787,166 (549,346) -3.1%Deferred Membership 3,734,400 3,492,580 241,820 6.9%Deferred Subscriptions 2,431,673 2,391,076 40,597 1.7%Deferred Conferences 5,257,249 5,220,418 36,831 0.7%Grants and Awards 4,082,851 4,084,724 (1,873) 0.0%Long-Term Debts 8,337,210 9,048,562 (711,352) -7.9%Total Liabilities 43,996,467 45,511,227 (1,514,760) -3.3%

FUND BALANCE 38,393,849 32,525,241 5,868,608 18.0%

TOTAL LIAB./FUND BAL 82,390,316 78,036,468 4,353,848 5.6%

Current Portion of Long-Term DebtsIncludes current portion of JPMorgan Chase and Capital Lease payment.The balance is lower in November 2014 due to $548,137 of post-retirement amount included in the November 2013 total .

Accounts PayableThe Trade Accounts Payable balance is $163,015 less than November 2013 balance due to controlled disbursement.

Accrued PayrollThe Long-term postretirement benefit amount decreased by $354,511.

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Deferred MembershipMoney received in advance for membership to be recognized as revenue over time. This is a liability until earned.Deferred membership revenue increased by $241,820 from $3,492,580 to $3,734,400.General Fund deferred membership increased by $167,107, Divisions increased by $70,953 and Round Tables increased by $3,760.

Deferred SubscriptionMoney received in advance for subscription service to be recognized as revenue over subscription period. This is a liability until earned.Deferred subscription revenue increased by $40,597 due strong RDA activities, offset by lower Booklist and LTR activities.

Deferred Conference RevenueMoney received in advance and to be recognized as revenue when the event takes place. This is a liability until event takes place.Deferred conference revenue decreased by $36,831. Midwinter balance is $48,871 more than November 2013, Annual conferencedeferred revenue balance is $239,229 higher than November 2013. Division deferred revenue is $251,268 lower than November 2013.

Grants and AwardsGrants deferred revenues are created when Grant receipts exceed the Grant expenditures.

Long-Term DebtsThe long-tern debt is $711,352 lower than November 2013.The second principal payment was made on July 1, 2014 in the amount of $647,500.

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II A General Fund Statement of Revenues and Expenses by Department November 30, 2014

REVENUES Year-To-Date Year-To-Date Year-To-Date Variance Prior Year ChangeActual Budget Variance % Actual FY15 - FY14

Publishing Services 3,308,726 3,329,809 (21,083) -0.6% 3,074,703 234,023Member Programs & Services 115,759 117,597 (1,838) -1.6% 170,882 (55,123)Communications 1,344,660 1,370,973 (26,313) -1.9% 1,393,081 (48,421)Interest Income 154,752 208,500 (53,748) -25.8% 180,331 (25,579)Mail List Sales 7,038 0 7,038 #DIV/0! 11,672 (4,635)Executive Office 16,599 30,000 (13,401) 100.0% 15,015 1,583Total Revenues 4,947,533 5,056,879 (109,346) -2.2% 4,845,685 101,848

Total General FundTotal General Fund revenues are $109,346 less than budget, $101,848 more than November 2013.

PublishingPublishing department includes ALA Editions, Neal Schuman, TechSource, Digital Reference, Graphics, Booklist, and American Libraries.Publishing revenues are $21,083 less than budget due primarily to lower subscription and advertising revenue, $234,023 more than November 2013.On line sales is $76,678 more than budget and book sales revenue is $76,966 less than budget.Publishing net revenue at November 2014 is $151,122, $21,243 less than budget, $15,928 more than November 2013.

MPSMPS includes Conference Services, ITTS, Office for Human Resources Development, OIF, OA, and Diversity. MPS net revenue is $23,467 less than budget, and $20,886 less than November 2013.Midwinter net expense is ($63,280) due to timing of actual expenses against budget. ITTS depreciation expense is $25,867 less than budget and professional services expense is $49,583 less than budget.

Communications:Communications includes Communications, AED, Library, ORS, IRO, PIO, Public Programs, Office for Library Advocacy, Membership Services, and Chapter Relations/Member Development.Revenue is $26,313 less than budget due to reversal of FY14 accrued revenue and $48,421 less than November 2013.

Interest income Interest income is $53,748 less than budget, $25,579 less than November 2013.

Executive OfficeExecutive Office includes Executive Board, Washington Office, HR, Office of Information Technology, and OGR.

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II A General Fund Statement of Revenues and Expenses by Department November 30, 2014

EXPENSES Year-To-Date Year-To-Date Year-To-Date Variance Prior Year ChangeActual Budget Variance % Actual FY15 - FY14

Publishing Services 3,157,604 3,157,444 (160) 0.0% 2,939,509 (218,095)Member Program and Services 1,263,996 1,242,366 (21,630) -1.7% 1,298,233 34,237Communications 727,213 741,144 13,931 1.9% 870,406 143,193Executive Office 1,072,574 1,177,395 104,821 8.9% 1,109,401 36,827Finance/Accounting/Staff Supp 441,474 461,536 20,062 4.3% 486,642 45,169Overhead Recovered (863,857) (1,181,151) (317,294) 26.9% (979,528) (115,671)General Administration 71,591 246,434 174,843 70.9% 81,026 9,435Total Expenses 5,870,594 5,845,167 (25,427) -0.4% 5,805,690 (64,904)

Operating Net Revenue (923,061) (788,288) (134,773) (960,005) 36,944

Total General FundTotal expenses are $25,427 more than budget, $64,904 more than November 2013.

PublishingPublishing expenses are on budget but $218,095 more than November 2013 due to higher payroll and publication related expenses,

MPSMPS is $21,630 more than budget, mainly due to higher Midwinter expenses but lower ITTS depreciation and professional fees.

CommunicationsCommunications expenses are $13,931 less than budget due to lower professional services fees and operating expenses.

Executive OfficeExecutive Office includes Standing Committees, Executive Board, Executive Office, Development Office, Washington Office,OITP, OGR, ALA Awards, and Human Resources. Executive Office expenses are $104,821 less than budget, $36,827 less than November 2013.

Overhead RecoveredOverhead recovered is $317,294 less than budget due to lower grant activities.

General AdministrationHealth insurance expense is $95,814 less than budget and annuity expense is $34,733 less than budget.

Operating Net RevenueThe expenses exceed revenues by $923,061, $134,773 worse than budgeted net expense of $788,288.

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II B General Fund Statement of Revenues and Expenses by Activity November 30, 2014

REVENUES Year-To-Date Year-To-Date Year-To-Date Variance Prior Year ChangeActual Budget Variance % Actual FY15-FY14

Dues 1,369,873 1,375,973 (6,100) -0.4% 1,388,015 (18,142)Sales of Books - Net 1,065,463 1,141,412 (75,949) -6.7% 1,228,620 (163,157)Other Material Sales 271,252 179,807 91,445 50.9% 44,262 226,990Subscriptions 802,223 830,442 (28,219) -3.4% 764,438 37,785Advertising 986,041 1,006,455 (20,414) -2.0% 957,719 28,322Meetings and Conferences 3,526 4,200 (674) -16.1% 27,270 (23,744)Grants and Awards 0 700 (700) -100.0% 0 0Misc. Revenue 449,157 517,890 (68,733) -13.3% 435,362 13,795Total Revenues 4,947,533 5,056,879 (109,346) -2.2% 4,845,685 101,848

DuesIncludes personal, organizational, special, life members, and continuing members.Total Dues income is $6,100 less than budget, $18,142 less than November 2013.

Sales of Materials-Net and Other SalesIncludes books, pamphlets, online sales, mail lists, ALA store, and miscellaneous sales at net of returns.Total sales of books and materials-net is $15,496 more than budget. Sales of books net of returns is $1,141,412, $75,949 less than budget.On-Line sales are $249,461, which is $76,678 more than budget.

AdvertisingIncludes Gross and Classified advertising revenue at net of commissions for all General Fund units. American Libraries is $22,055 more than budget, booklist advertising revenue is 58,792 less than budget.

SubscriptionSubscription revenues are $28,219 less than budget due to lower Booklist subscription revenue.

Meetings and ConferencesIncludes Registrations fees, Exhibit space rentals, and Meal functions for all General Fund units.

Miscellaneous RevenueMiscellaneous income includes donations, interest/dividends, royalties, and miscellaneous fees. Royalty revenues are $12,089 more than budget. Donation is $19,220 less than budget, and interest income is $53,748 less than budget.

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II B General Fund Statement of Revenues and Expenses by Activity November 30, 2014

EXPENSES Year-To-Date Year-To-Date Year-To-Date Variance Prior Year ChangeActual Budget Variance % Actual FY15-FY14

Payroll and Related 3,351,715 3,541,292 189,577 5.4% 3,458,071 106,356Outside Services 781,983 816,480 34,497 4.2% 821,488 39,505Travel and Related 125,665 129,351 3,686 2.8% 150,176 24,511Meetings and Conferences 44,768 73,516 28,748 39.1% 48,469 3,701Publication Related 582,678 629,186 46,508 7.4% 578,917 (3,761)Operating Expenses 1,194,007 1,161,908 (32,099) -2.8% 1,164,704 (29,303)Total IUTs (214,218) (220,280) (6,062) 2.8% (201,664) 12,554Total Expenses (1) 5,866,598 6,131,453 264,855 4.3% 6,020,161 153,563

Contrib. Margin bef OH/Tax (919,065) (1,074,574) (155,509) 14.5% (1,174,476) 255,411

Salaries - General FundGeneral Fund salaries through November are $2,637,493, which is $168,479 less than budget. This is $389,272 less than the total years 5% salary attritionbudget of $557,751. The temporary help is over budget by $1,977, and overtime is under budget by $1,522. Salary savings including temporary help and overtime is $389,727 less than the total year attrition budget.

November 2014Budgeted salary savings5.0% attrition (FY2015) 557,751

YTD Budget - Salaries 2,805,972YTD Actual - Salaries 2,637,493Salary Savings To Date 168,479

Salary Savings less Attrition (389,272)

YTD Budget - Temporary Help 19,232YTD Actual - Temporary Help 21,209Temporary Help Savings (1,977)

YTD Budget - Overtime 9,662YTD Actual - Overtime 8,140Overtime Savings 1,522

Salary savings remaining to be earned (389,727)

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Outside ServicesOutside service expenses are $34,497 less than budget due to lower professional fees by $66,510, audit fees by $24,970 and maintenance by $23,062, offset by higher temporary help expenses by $49,328 and bank fee by $37,925.

Meetings and ConferencesMeetings and Conferences expenses are $28,748 less than budget due to timing of budget against actual expenses.

Publication RelatedThe publication expenses are $46,508 less than budget.

Operating ExpensesOperating expenses are $32,100 more than budget due to higher royalty expense and timing of amortization expense adjustment.

Net RevenueFY 2015 FY2015

November Actual YTD Budget VarianceContribution Margin (919,065) (1,074,575) 155,510IUT- General Overhead (361,314) (694,477) (333,163)

Total Expenses before Allocations (557,751) (380,098) 177,653

IUT Allocations 455,891 493,458 37,567

Total Expenses from Operations (1) (522,779) (640,722) (117,943)

Net Revenue/(Expenses) (1,013,642) (873,556) (140,086)

(1) Excludes $90,581 related to technology reserve expenses

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III A. American Library AssociationCOMMENTARY: STATEMENT OF REVENUES AND EXPENSES – PUBLISHINGNOVEMBER FY15 COMMENTARY

Publishing Department

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Total Revenues are $21,084 less than budget. Direct Expenses are $48,498 less than budget. The Overhead Variance is $13,442 less than budget due to the revenue shortfall. The Subscription Equivalent is $62,100 less than or better than budget. Total Expenses therefore are $159 more than budget and Net Revenues are $21,243 less than budget. However, mainly because the Subscription Equivalent is better than budget, the Contribution Margin, which is the money that comes back to ALA, is $27,415 more than budget. The Contribution Margin variance is equivalent to the Total Revenue variance minus the variance in Direct Expenses (-$21,084 + 48,498 = $27,414). The Contribution Margin is also equivalent to the consolidation or aggregation of the Net Revenue variance, the Overhead variance, and the Subscription Equivalent variance (-$21,243 -$13,442 + $62,100 = $27,414).

Product sales are $76,966 less than budget mainly because of unintended allocation entries in ALA Graphics. Net Sales in ALA Editions and ALA Neal-Schuman are more than budget. Online sales mainly from webinars and e-courses are $84,399 more than budget. Subscriptions are $23,218 less than budget mainly on the magazine side, whereas RDA subscriptions are more than budget. Net Advertising revenues are $53,482 less than budget at this time but prospects are still strong. Classifieds are $33,068 more than budget. Royalties and licensing fees are $11,765 more than budget. Direct Expenses are $48,498 less than budget mainly because of salary savings from open positions and savings in Order Processing/Fulfillment as a result of the shortfall in product sales. Overhead Expense is $13,442 less than budget because of the revenue shortfall. The Subscription Equivalent is $62,100 better than budget because revenues are more than budget and expenses are less than budget. Expenses budgeted in FY15 for the September issue of American Libraries were charged to FY14; this is expected to adjust to budget by yearend.

ALA Publishing

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The ALA Publishing Unit comprises the consolidation of several previously separate units: ALA Editions, ALA Neal-Schuman, ALA TechSource, and ALA Digital Reference (Guide to Reference and RDA). The unit is also responsible for ALA Graphics sales. Total Revenues for the consolidated unit are $23,552 more than budget. Total Expenses are $2,345 less than budget. Net Revenues are $25,897 more than budget.

Total Revenues for ALA Editions are $13,718 more than budget. Total expenses are $99,863 more than budget. Net Revenues are $86,145 less than budget. Payroll Related expenses are $26,983 more than budget because the final allocation of the salary budget did not make it into the final version of the budget. Consequently the salary lines for the individual projects will not match the budgets throughout the rest of the year. The totals will reconcile as they are rolled up to the unit level. Actual salaries are actually less than the intended budget because of open positions. To that point, Outside Services is $11,518 more than budget because of the cost of temporary employees to cover the several open positions. Publication-Related Expenses, which includes Order Processing/Fulfillment and Cost of Sales, are $56,186 more than budget. Book production expenses are $25,624 less than budget because of a timing difference in recording the Inventory Adjustment offset. This will adjust over time. Catalog production expenses are $42,088 more than budget because costs from the August catalog released in FY14 had to be charged to FY15. This will be offset at the end of the year when budgeted costs for the next August catalog will be recorded September. Order Processing/Fulfillment is $10,338 more than budget mainly because sales are more than budget, but also because costs are more than budgeted. As a percent of sales, OP/F is 8.9% compared to a budget of 8.0%. Cost of Sales $26,169 more than budget and 15.5% of Sales Net compared to a budget of 10.0%, a variance that is under review. Postage is $5,065 more than budget because of the carryover catalog expenses from FY14. Royalties are running at 12.6% compared to a budget of 9.1%, generating an expense that is $15,666 more than budget. This is under review but likely coming from the unplanned carryover of a number of bigger books published late in FY14.

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Total Revenues for ALA Neal-Schuman are $21,486 more than budget. Total Expenses are $42,004 less than budget. Net Revenues are $63,490 more than budget. Book sales are $41,264 less than budget but returns are $51,570 less than budget for a net gain of $10,306. The budget for returns was inadvertently overstated. This will adjust over time. The entry for Commission/Sales Rep is where sales from the co-publishing arrangement with Facet Publishing are recorded. Sales weren’t budgeted for entry at this time and as a result are $17,715 more than budget. Payroll Related expenses are $22,628 less than budget, but as with ALA Editions, the actual allocation is not in synch with the budgeted allocation and will remain out of synch all year. The Payroll Related line will be reconciled at the unit level. Publication-Related Expenses, which includes Order Processing/Fulfillment and Cost of Sales, are $49,522 more than budget. Book production expenses are $29,464 less than budget in part because there are fewer books in production than planned at this point, but also in part because of a timing difference in recording the Inventory Adjustment offset. This will adjust over time. Marketing production costs are $29,006 more than budget mainly because of Order Processing/Fulfillment and Cost of Sales. Order Processing/Fulfillment is set up as a separate project from the rest of marketing to separate the product shipping charges from the catalog postage charges, both of which are charged to the same line. The charges for Order Processing /Fulfillment are not being charged to the project that has the budget. This will be corrected in the future. In the meantime, actual OP/F expenses are $28,156 less than budget largely because book sales are less than budget. Amortization is $27,749 more than budget. The monthly charge for the amortization of the Neal-Schuman acquisition intangibles is more than what was in the 10 year plan for FY14. We will take this up with accounting for future commentary. Royalty Expense is $9,771 more than budget in part because sales after returns are more than budget. However, the actual royalty rate is 11.3% compared to a budget of 8.8%. This may be due to the mix of products sold, but may also need to be accommodated in the future. Interest expense is $7,722 less than budget. This is the interest on the loan for the Neal-Schuman acquisition. It appears both the amortization and interest budgets need to be re-assessed.

The Huron Street Press is being phased out and not budgeted for any revenues or expenses with the expectation that any expenses would be covered by ongoing sales of published titles. Total revenues are $5,774 but expenses are $9,432 for a loss of $3,658. This project is in transition and under review.

Total Revenues for ALA TechSource are $70,246 more than budget due to increasing enrollments in webinars. Single issue sales of LTR are $3,822 less than budget. Sales Online (webinars and e-courses) are $83,075 more than budget (a 57% increase over budget). Subscriptions to LTR and SLN are $7,366 less than budget. Advertising revenues from sponsored webinars are $1,392 less than budget. Total expenses are $6,256 less than budget. Net revenues are $76,502 more than budget.

ALA Graphics

Page 18

Total Revenues for Guide to Reference are $780 less than budget. Total Expenses are $3,659 less than budget. Net Revenues are $2,879 more than budget. Guide to Reference is being managed to maximize a reduced market for licensed reference products.

Total Revenues for RDA are $11,547 more than budget. Total Expenses are $$38,646 more than budget. Net Revenues are $27,099 less than budget. Subscriptions are $8,530 more than budget. There is an unbudgeted entry for miscellaneous fees of $3,530 that represents a payment for the French translation. Web Operating Expenses are$11,078 more than budget in part because of a timing difference in database maintenance expenses. The impact on the yearend budget is in review. The amortization of development costs is running slightly more than budgeted and so currently $4,174 more than the year to date budget. This will be managed but may also persist. Org Support/Contribution represents an expense reimbursement from ALA Editions for print copies of RDA. It is currently $12,502 less than budget because the transfer budgeted for the first quarter has not yet been processed.

Total Revenues are $98,439 less than budget. Total Expenses are $98,366 less than budget. Net Revenues are $72 more than budget. There were some allocation issues in establishing the year-to-date budget. Year-to-date actual last year was $271,120 on the basis of a very strong fall catalog that included Big Bang Theory and Enders Game posters and a total of 28 new products. In addition Teen Read Week sales were strong. FY15 year-to-date sales were budgeted for $322,887 even though the FY15 Fall catalog was much more modest. In addition, the Order Processing/Fulfillment operation applies all product discounts to ALA Graphics and those corrections have not yet been transferred to ALA Editions. Consequently, Graphics sales are temporarily understated. Even so, actual revenues are only $46,671 less than last year. Sales are likely to adjust to budget over time. Payroll Related expenses are $11,051 less than budget. Publication Related expenses are $48,055 less than budget mainly because of savings in Order Processing/Fulfillment and Cost of Sales due to the variance to budget in sales. Likewise, Postage is $18,449 less than budget. General Overhead is $25,016 less than budget because Total Revenues are less than budget.

Booklist Publications

American Libraries

Page 19

Total revenues are $14,517 more than budget. Direct Expenses are $53,249 less than budget. General Overhead is $5,665 more than budget because revenues are more than budget. The Subscription Equivalent is $62,100 less than (i.e., better than) budget. Subscriptions Revenue from institutional subscribers is on budget. Net Advertising revenue is $11,012 less than budget, although prospects are still strong. Classified advertising revenue is $33,068 more than budget. Royalties (mainly from the Buyer’s Guide) are $7,530 less than budget and under review. Payroll Related expenses are $6,737 less than budget due to allocation adjustments that will adjust to budget in future months. Temporary employees are $6,683 more than budget to cover an employee on medical leave. Publication Related expenses are $20,673 less than budget primarily because of timing differences in adjusting to allocation adjustments but also because of delayed increases to ink and paper prices. Publication Related expenses are expected to adjust to budget in future months. Likewise, Postage is $7,897 less than budget for the same reasons. IUT CPU is $21,774 less than budget because of delays in chargebacks from Production Services for layout and design. This too will adjust to budget in the future.

Total Revenues for Booklist Publications are $88,679 less than budget. Total Expenses are $40,229 less than budget. Net Revenues are $48,450 less than budget. Sales Online revenues (Booklist Online subscriptions) are $1,315 less than budget. Sales Miscellaneous (review copy sales) are $5,817 less than budget. Subscriptions are $23,861 less than budget and will probably remain so throughout the year. Circulation challenges continue but a marketing campaign is under way that may improve prospects. Net Advertising is $88,318 less than budget but also missing Book Links revenue that was meant to be recorded this month. Advertising should adjust to budget in future months. Royalties from licensing revenue is $31,437 more than budget. Prospects from Baker & Taylor’s Publishers’ Alley and delayed payments from Amazon and Follett are favorable. Payroll Related expenses are $37,712 less than budget due to open positions. Increases in manufacturing expenses arise from a number of special inserts for publishers that will be offset by upcoming increases in net advertising revenue. The variances are offset by savings in postage and order processing/fulfillment. Amortization for Web operating expenses relating to Booklist Online and publishing system is $5,225 more than budget but should adjust to budget by yearend. Accounting adjustments, improved sales, reduced manufacturing, and salary savings are expected to contribute to meeting the net revenue budget by yearend.

III B. ALA Member Programs and Services

November 2014– FY15 1st Quarter Report

Summary

The 1st Quarter of FY14 showed mixed results:

GENERAL FUNDConference ServicesMidwinter Meeting:

· A relatively aggressive target was set for the 2015 Midwinter Meeting based on past history with Chicago. At this point, Conference Services anticipates being off that target by $150,000. Expenses are also expected to be under budget. At this point, much depends on on-site factors which cannot be fully predicted, e.g., potential weather impacts on busing costs, on-site AV experience.

· Registration for the 2014 Annual Conference will open January 12.

· YALSA’s fall 2014 Symposium hit its target with just over 500 attendees.

· ACRL/CHOICE is performing better than budget with strength in both ad sales and webinars.· Banned Books Week (OIF) performed well this year slightly exceeding its revenue target.

· Every Child Ready to Read (ALSC, PLA) continues to be a strong performer.

· Seals and related permissions typically pick up beginning in the 2nd quarter.

· Looking at Division national conferences, ACRL (March 2015) is at (or better than) targeted for exhibit space sales and donations; registration is strong and tracking ahead of 2013 (Indianapolis). FY2015 is a non-conference or “spend-down” year for both PLA and AASL.

· Registration fees (for continuing education) continue to be a bright spot particularly in ACRL, ASCLA, LITA, LLAMA, and RUSA. HRDR had a good performance from its initial CE offering.

· Dues revenues during the first quarter were mixed with some Divisions showing gains and some small losses. United for Libraries is beginning to see the impact of the special subscription membership program.

Page 20

At this point, Midwinter results are somewhat mixed. As of January 5, registration is at 65.89% of budget: $653,866 against a registration budget of $992,425. In the Regular Member area (ALA Members/ALA Division Members) registration was running behind 2014 (marginally) and 2013. There are gains in Other Member registration (Retired Members, Students, Underemployed), as well as One-Day registration. Registration is generally keeping pace with Philadelphia. The Philadelphia pace would put MW at just under 80% of budget at the time the Midwinter Meeting opens. Chicago historically has strong on-site registration (also generally true of Philadelphia) – so much will depend on the weather. Conference Services is analyzing registration patterns. The current concern is that registrations may be shifting away from full conference to one-day. There will be additional analysis following Midwinter. Exhibit space sales are currently at $1,333,200 against a budget of $1,427,000; an additional $30,000 of exhibit space sales is anticipated. Advertising is currently at $269,565 against a budget of $270,000, with another $20,000 anticipated.

Annual Conference:

ITTS

MPS AED

REVENUES

EXPENSES

Page 21

On the expense side, shuttle buses (assuming no significant weather issues) will be under budget, as will Security. ALA Conference Services has moved to a new AV vendor and is tracking expense performance closely. Conference Services has had a vacant position since the start of the fiscal year and is currently more than 16% below budget on Salaries.

On a net basis, Conference Services is expecting to be on target. A projected shortfall on the top line (est. $150,000) will negatively affect overhead recovery.

Registration for ALA 2015 Annual Conference will open on January 12, 2014. The decrease in “bundle” sales (MW+AC) will also impact early AC2015 numbers, though bundle sales flattened out in Fall 2013. San Francisco is expected to be an attractive conference site. Both exhibit space sales and advertising sales are under way. Information on the Annual Conference will be included in the 2nd quarter report.

Salaries are lower than normal due to an open position. Professional services and depreciation expenses are low due to timing issues. Professional services are being used on managed services to supply us consultants with a range of expertise.

The Senior AED unit is under budget (-$53,409 against a budget of -$58,294) on expenses. There will be shifts in various expense lines as the year moves forward, with allocation of some expenses to other units and catch-up on travel expenses.

Revenue targets have been exceeded in the first quarter ($3,900 against a 1st quarter budget of $0) due to the success of the office’s first online course, Management of Technology. The course had a capacity for 20 students and it was full after only two weeks of advertisement. It was recently approved as an approved course to satisfy a competency in the CPLA program so we hope to run it at least once more during this fiscal year.

Expenses were down even though there were professional service costs associated with the development of the new course and salary adjustments at the end of the first quarter due to staff raises. All other areas were contained.

At the end of November 2014, ITTS expenses are 13.02% or $79,098 under budget.

OA

OFD/OLOS

OIF

Page 22

OA is slightly ahead on revenue ($57,623 against a budget of $56,296) from accreditation fees. Expenses are over budget, primarily in travel-related areas. Salaries/related is also slightly over budget, related to changes in salary rate.

Revenues are lagging well behind budget. On the expense side, just over 25% of the budget allocations in OLOS/Diversity for FY2015 have been expended. That’s almost on track with what is expected at the end of the first quarter of the year. Things will start to ramp up in terms of travel expenses during the late part of the second quarter and during the third quarter, with several meetings and events for the Ethnic Affiliates and the literacy organizations with which OLOS is affiliated. Obviously OLOS/Diversity is ahead of last year this time in terms of salaries and benefits with the Literacy Officer on board, but looks to be on target with projections for the year. At the end of the 1st quarter, OFD/OLOS is at -$111,813 against a budget of -$98,717.

Overall expenses for OIF's administration and ongoing projects is tracking at or slightly below budget (19.14% below budget across all projects) and OIF appears to be on track to meet its budget goals for the year. (Based on December 2014 data)

Travel expenses are ahead of budget, but should come into line when the office receives travel reimbursements from state associations and school boards for Barbara Jones and Deborah Caldwell-Stone's travel to workshop sites. In addition to travel reimbursements, workshop honoraria from these organizations are also anticipated; these are now a small but growing revenue source for OIF.

Anticipated revenues that are not reflected in the budget include FTRF's salary reimbursement to OIF for 50% of Barbara Jones' salary and benefits and 60% of Jonathan Kelley's salary and benefits. We are also anticipating an increase in book royalties in the 4th quarter with the planned publication of the 9th edition of the Intellectual Freedom Manual in April 2015.

Banned Book Week revenues for FY2015 ($48,772) are lower than FY2014 ($61,667), but are offset by a comparable decline in expenses. Warehouse, fulfillment, and royalty expense are within budgeted amounts and the new edition of the Banned Books Week Resource Guide is now available in the catalog, which should help support this year's revenues. NIF remains on a near break-even basis with its digital subscription model as the editor and staff work on the publication's redesign.

III C. Communications and Member Relations DepartmentNovember 2014 Report

AED Office and Membership Development

Office for Library Advocacy (OLA)

Chapter Relations Office (CRO)

International Relations Office (IRO)

Page 23

The Communications and Member Relations Department is made up of the following units: The AED Office and Membership Development; Office for Library Advocacy; Chapter Relations Office; International Relations Office; Library; Member and Customer Services; Office for Research and Statistics; Public Information Office; and the Public Programs Office.

Membership dues revenue is about $1.36 million which is very close to budget. Membership Development expenses are about $7,500 over budget primarily due to printing and mailing costs. As of December, total ALA membership was 54,873. This is 2,127 fewer members or 3.73% lower than the December 2013 count. The largest membership category loss was in student memberships which experienced a loss of 1,120 members most likely due to lower enrollments in MLIS programs. The number of regular members decreased by 920 and the number of continuing members – those who receive free ALA membership upon retirement after 25 years of continuous membership – increased by 156. Two divisions and four round tables had membership increases compared to December 2013.

Expenses are about $13,000 under budget due to timing, primarily in the use of professional services.

Expenses are about $20,000 under budget because the charge for our advocacy software – Engage – is being spread out over 12 months instead of being posted in October. The budget will begin to normalize over the next few months.

Expenses are about $19,000 over budget because of a $14,000 encumbrance from FY14 for the Sharjah Book Fair. Once the wire transfer is posted in the December performance report, the IRO budget will be back on track.

LibraryExpenses are about $17,000 under budget due to timing.

Member and Customer Services (MACS)Expenses are about $2,000 more than budget due to a lower offset for registration processing.

Office for Research and Statistics (ORS)Expenses are about $4,000 under budget due to a delay in using professional services.

Public Information Office (PIO) and the Campaign for America’s Libraries

Public Programs Office

Page 24

Expenses are about $9,000 more than budget due to timing for professional services. Expenses for the Campaign for America’s Libraries are on budget.

Expenses for the PPO administrative project are about $23,000 over budget due to timing. The Cultural Communities Fund has a net asset balance of $1.94 million.

III D. ALA Executive Office/Governance OfficeNov-14

Council Administration [11-101-0000]

Executive Board Administration [11-102-0000]

Fall Board Meeting [11-102-0118]

President:

Support [11-102-0100]

Budget (Initiatives)[11-102-0103]

Page 25

During her presidency thus far, Courtney Young has spent or earmarked approximately $47,000 of her Presidential Initiatives budget of $75,000, leaving a remaining budget of $28,000.

This section tracks expenses associated with support of the governance function (Executive Board, Council, President, President-Elect) of the Association.

As of November 2014 approximately $33,315 or 8.4% of the FY15 Council administrative budget of $39,545 has been spent. No unusual expenses are anticipated for this budget.

The report ending November 2014 reflects expenditures of approximately $25,700. This is considerably more than the $13,325 budget (52% more!) and allocating expenditures will be investigated.

Recorded expenses for the Fall Executive Board meeting, held in Chicago on October 24-26, total $24,842. This is approximately $2,614 over the total budget of $22,228 and is primarily attributed to transportation costs.

Approximately $51,532 remains from a total budget of $61,475. This includes anticipated and unposted expenditures.

III E. WASHINGTON OFFICE FINANCIAL SUMMARYNov-14

Page 26

Washington Office Administration is $14,315 under budget for the month of November and is 12.22% under budget for year to date expenses. This is mostly attributed to a staff vacancy, but also late receipt of expected November invoices will appear in the December report. Other expenses have been as expected.

OGR is $10,458 over budget for the month of November and is 6.26% under budget for the year to date expenses. This overage is associated with payment of salaries and benefits. Other expenses have been as projected.

OITP is $1,145 over budget for the month of November and is 1.61% under budget on year to date expenditures. This small overage is associated with salaries/benefits adjustments. All other expenses have been lower than projected.

IV Division Statement of Revenues and Expenses November 2014

TOTAL DIVISIONS Year-To-Date Year-To-Date Year-To-Date Prior Year Change Beginning Ending Actual Budget Variance Actual FY15-FY14 Fund Balance Fund Balance

Total Revenue 2,838,607 2,663,440 175,167 3,640,788 (802,181)Total Expenses 3,061,838 3,502,063 440,225 3,644,262 582,424Net Rev(Exp) (223,231) (838,623) 615,392 (3,474) (219,757) 15,118,144 14,894,913

Net Revenues PLA (12,374) (213,580) 201,206 (129,068) 116,694 3,062,221 3,049,847ACRL (136,931) 117,160 (254,091) (114,311) (22,620) 4,324,706 4,187,775CHOICE 41,736 (175,731) 217,467 (145,917) 187,653 3,017,507 3,059,243AASL (62,056) (429,336) 367,280 378,436 (440,492) 1,033,064 971,008ASCLA (5,738) 1,162 (6,900) (4,168) (1,570) 98,828 93,090ALCTS (2,695) (8,432) 5,737 23,902 (26,597) 274,725 272,030LLAMA 2,739 (6,040) 8,779 22,104 (19,365) 195,822 198,561RUSA (12,234) (17,764) 5,530 5,151 (17,385) 530,258 518,024UFL (65,972) (36,112) (29,860) (60,836) (5,136) (176,838) (242,810)LITA 49,326 7,511 41,815 17,202 32,124 456,871 506,197ALSC 64,130 (39,937) 104,067 53,121 11,009 2,131,987 2,196,117YALSA (83,163) (37,525) (45,638) (49,090) (34,073) 168,993 85,830TOTAL (223,231) (838,623) 615,392 (3,474) (219,757) 15,118,144 14,894,913

AASL

ACRL

Page 27

As a non- National Conference year, AASL is in a deficit budget year. The Fall Forum continued to decline even with a second year of ‘satellite site’ offerings to defray the traveling expenses for attendees. AASL’s executive committee acknowledged this event no longer meets the financial needs of AASL nor the professional development needs of our members and voted to establish a working group to reconsider the non-conference year professional development offering. Advertising revenue for AASL’s serial publications is on track and our non-serial publication sales seem to be holding steady. While FY15 is a ‘spend down’ year AASL has budgeted for expenses that strategically advance the association, including the development and printing of the “School Libraries Transform Learning”, a digital supplement in collaboration with American Libraries, a professionally designed infographic that led to an article in a national school administrator magazine, a professional taping for School Library Month’s spokesperson Julianne Moore, and a printed insert in Knowledge Quest to highlight AASL’s award winners to membership. Registration for the FY15 National Conference will be opening in January with exhibit sales on track and several sponsorships already secured.

Although the main action for ACRL’s revenue will take place in the third quarter due to the timing of the ACRL conference, a look at the first quarter shows much to feel positive about. Revenues of $500,990 are 3% better than the $485,984 budgeted and expenses are $633,118 or 10.04% less than the $701,589 budgeted. This leaves a net of -$130,129 against a budgeted net of -$215,606.

ACRL/CHOICE

ALCTS

Revenue:

Page 28

The first quarter ended with Choice net income of$ 42,742, favorable to budget by $218,473 on revenues of $874,334 and expenses of $831,591. The net income balance represents an increase of $188,660 over prior year, thanks to vigorous improvement ($230,841) on the revenue side, driven partially by timing (RCL and royalties) but also by better-than-expected ad sales and webinar income. Direct spending was up $15,630 to prior year but still came in at $10,900 (1.53%) better than budget. Year to date, Choice subscription revenue is down $8,199 (5.48%) to prior year, while circulation, perhaps a more reliable indicator of trends, continued to show a 10.5% decline year-over-year in each of the first three months of FY15. For its part, Choice Reviews Online (CRO) is performing slightly under budget, at $171,823, but is up $19,120 (12.52%) year over year, while average monthly circulation year to date has improved by only 4%, the difference being due to better enforcement of our pricing rules. Somewhat predictably, digital advertising (Choice Reviews Online) is up $16,153 to prior year, but print advertising is also showing an improvement. At $123,877 in net revenue, Choice magazine ads are $9,814 (8.6%) and almost nine pages ahead of last year. But the best news comes out of the Choice/ACRL webinar program. Through the first quarter, webinars garnered $73,500 in gross revenue ($36,750 to Choice), and we are on track to host thirty-three (33) webinars this year, against a budgeted fifteen. On the licensing side, once adjusted for timing, licensing royalties are running a little over $5,000 ahead of last year. All in all, we are off to an encouraging start for the Choice fiscal year.

Overall, revenue is $8,900 below budget or 7.5%. but well below FY14, $140,322 Personal dues revenue is lagging budget by 5%. Registration fees are slightly above budget 2%. This is well below FY14 which was $64,000. Book sales are well below budget and below FY14. LRTS revenue is actually over by $118. Some donations have not been recorded: including $4,000 for the MW reception from YBP.

The strong performers are webinars, classified ads, and online ads. The bright star has been the ACRL/CHOICE sponsored webinars which have been quickly snapped up by sponsors. In the first quarter we have already reached 50% of the entire budget for ACRL webinars (sponsored and registration fee-based) with additional webinars still being sold (see details below in the CHOICE section). Classified advertising is continuing its resurgence showing a 23% gain over budget with revenues of $95,572 versus a budget of $77,448. Online product advertising is on budget and print advertising is surprisingly ahead of budget by 24% due to better than budgeted print ad sales in C&RL News. Book sales are lagging behind budget by 36% although two to three new titles will be published in early 2015, which should boost sales. Membership is 1.5% above budget, which may be due to a slight boost from the discounts members receive on ACRL Conference registration.

Speaking of the ACRL Conference, early indicators suggest a strong performance. Exhibit sales have met budget with 3.4% more booths sold than for the 2013 Conference at this point out, donations are at $235,450 which is 118% of budget, and more than 1,000 people have registered bringing us to 35% of budget and pacing ahead of both our 2013 (Indianapolis) and 2011 (Philadelphia) Conference weekly registrations. However, we tend to see earlier registration for West Coast Conferences so it is too soon to say whether this trend will lead to a record-breaking attendance.

Expenses are under budget primarily in professional services, program allocations (funds budgeted for things such as reimbursements to members, unplanned strategic initiatives, dues to other organizations, etc.), and printing (with fewer new books printed, print expenses are down correspondingly). All in all off to a good start for FY2015!

Expenses:

Overall:

Overall, net is negative at $2,700. This is well below the net for the first quarter in FY14: $24,000.

ALSC

ASCLA

Dues are slightly higher than last year, same time: $11,275 compared to $11,159.

Sales of Books Revenue: Planned revision of standards for people who are incarcerated will be started later in the year than planned.

Total Revenue are about 66.71%, or $23,917, under projection for this time of year, but only about $3,400 under last year at the same time.

LITA

Page 29

Total expenses before overhead and taxes were under budget by 5%. Production expenses for Children and Libraries not yet posting (leaving us 88% under budget). Service to members was running just about at budget coming in 4% under budget in total expenses. The Institute was over budget due to a/v expenses posting this fiscal year ($13,000 was budgeted to post in FY14).

The best news for ASCLA’s budget is the new online course offerings that were approved by the Online Learning Committee. These courses should provide a stable stream of income for ASCLA in future years.

Online CE sales are down compared to last year, however ASCLA has new offerings in webinars and courses that have been scheduled in March 2015 and beyond which will contribute to a robust new line-up.

Revenues are running behind budget, at $138,440 against a YTD budget of $168,373. Although registration fees are behind budget at this time, much of that will be recovered through the winter, spring, and, summer online learning courses.

Expense allocations will not match up well due to issues with the allocation of the FY15 budget. Personnel expenses are on budget. LRTS expenses were posted in November but the budget doesn’t reflect that. Other expenses are off budget: meal functions and speaker expenses for example. All other expenses are close to budget. Direct expenses before overhead overall are under budget by $9,000 or 8% and similar to FY14. A miscalculation in overhead for FY15 means that overhead expenses will always be well under budget but close to FY14. This affects the total expense line. Total expenses as reported are under budget by $14,600.

The first quarter shows basically what is to be expected. Dues revenue is under budget. CE revenue is over budget. Book sales are under. On the expense side the major difference so far is misallocation of the budget.

As of FY 2014 first quarter, ALSC is performing well. Revenues are ahead of budget, and expenses are under budget. Total revenues are ahead of budget by 33%. Dues are performing 2% ahead of budget; permission fees for use of the seal images are now ahead of budget by 212% or $40,000; Every Child Ready to Read product sales are running 96% ahead of budget; the Institute revenues came in almost 4% ahead of budget; and online continuing education registration is tracking just ahead of budget at 4.5%.

LLAMA

Overhead is 8% ahead of budget.

Net Revenue is nearly $9k better than budget but behind FY14 due to lower webinar revenue.

PLA

Revenues:

Expenses:

RUSA

Page 30

Direct Expense is 88% of budget. Administrative expense is on budget. Additional travel expense for the fall meeting will appear in next report. Webinar expense is also under budget (75% of budget).

Looking ahead, like previous years, membership is trending downward but staying close to budget. CE revenue will pick up in the 2nd quarter as more webinars are produced. Two major items to note for FY15: (1) a total of five pre-conferences were approved this Fall, though only two had been budgeted last summer. The BES tour is generally a sell-out. The other topics are disparate enough to warrant experimenting with more pre-conferences than usual. This includes a test of holding the Career Institute as an Annual preconference; to date, it has been offered as a MW institute. The FY15 budget will also be impacted by the lack of a fundraiser at Annual. The Financial Advancement Committee is focused on development of an annual giving campaign. (2) The LLAMA executive director will be on sabbatical from February-May 2015, so an additional $5k has been budgeted for temporary help in his absence. A former division executive director will provide support to the Board/Executive Committee and membership, as well as check in at the office at least once a week. The final cost of this support will likely be closer to $8k. Though the Division is budgeted to lose of $11,000 in FY15, solid CE/preconference performance should result in a near break-even year.

Through November 2014, PLA revenues are 13% over budget (actual $200,052 vs. budget $177,223). This is primarily a result of PLA membership dues being over budget by $16,607. In a non-PLA conference year, dues make up over half of PLA revenues. Other revenue variations from budget include donations being over budget by $6,550 while registrations and advertising are under budget.

Through November 2014, expenses are 47% under budget (actual $206,525 vs. budget $390,803). Salary and benefit savings are $61,600. These savings are the result of a vacant position (filled in late October) and grant funding that offsets a portion of PLA salary costs. (Note: In FY15, PLA is managing one IMLS grant for early literacy research and two Gates Foundation grants: Edge initiative and impact measurement). These expenses and grant funding are not reflected in this report. Other major variances are expenses not yet charged for PLA board meeting (held in October) and printing and mailing. These are timing issues.

A deficit budget was planned this year and will reduce the reserve fund somewhat if expenditures and revenue meet projections. However many new online offerings will probably help offset a deficit.

Revenue is on budget (1.5% over) but well below FY14 because last year one early webinar accounted for a large percentage of the CE revenue. Still, webinar revenue is 11% ahead of budget. Membership revenue is less than $1k below FY14. Registration for the MW Career Institute is below budget but strong enough to move forward. That revenue will appear on the January report.

Dues:

Dues are running behind last year, same time: $45,909 compared to $48,566; and about 7% under projection for this time of year. Online CE:

Subscriptions for RUSQ are about the same as last year, same time.

Total revenue is about 8.45% under projection for FY2015 at this time of year; and about $7,000 under last year same time.

Total expenses are 22.09%, or $22,257 under projection for this time of year; but about the same as last year at this time.

UNITED FOR LIBRARIES (prev. ALTAFF)

YALSA

Revenues:

Direct Expenses:

Overhead is better than budget ($24,983 compared to a budget of $12,064) as a result of strong revenue performance.

Net Revenue is better than budget ($29,242 against a budget of -$37,525).

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Although online CE revenue is about the same as last year at the same time, we have a robust schedule in place for the rest of the year and most of our new and standard offerings are scheduled in and after March, 2015.

United for Libraries will be showing a significant decrease in future reports due to a recent move of their offices out of Center City Philadelphia to Bryn Mawr, PA. This move will save approximately $20,000 in expenses over the course of FY2015. In addition, Texas has purchased membership for all their libraries in ALA and United so revenue in that category is being reflected under “subscriptions” and will continue to increase over the course of the year. The corporate campaign for United has commenced with good early returns though not soon enough to be reflected in the first quarter.

Revenue is ahead of budget ($209,148 against a budget of $168,202). Registration for the Symposium was on target, with gross revenues for the event at $116,000. Dues are tracking very close to budget (0.4% behind). Book sales are 46% behind budget, but a new publication in January is expected to boost book sales. YALS subscriptions are slightly behind budget. Bulk sales of seals are also significantly behind budget. TTW donations are better than budget, but FOY donations are lagging. Other revenue categories (webinars and e-courses, ads) are showing mixed results.

Expenses are below budget. Recruitment [membership] is 49% above budget due to a post-budget submission decision to exhibit at the ARSL conference. Most other expense areas close to or under budget.

V Round Table Statement of Revenues and Expenses November 2014

TOTAL ROUNDTABLES Year-To-Date Year-To-Date Year-To-Date Prior Year Change Beginning Ending Actual Budget Variance Actual FY15-FY14 Fund Balance Fund Balance

Total Revenue 52,455 63,582 (11,127) 60,628 (8,173)Total Expenses 18,448 52,079 33,631 19,714 (1,266)Net Rev(Exp) 34,007 11,503 22,504 40,914 (6,907) 1,470,951 1,504,958

Net Revenues LHRT 1,683 (498) 2,181 1,820 (137) 53,442 55,125ERT 1,442 (2,353) 3,795 (1,004) 2,446 32,962 34,404FAFLRT 662 1,427 (766) 1,042 (380) 13,480 14,142GODORT 8,236 1,875 6,361 4,446 3,790 128,078 136,314IFRT 2,306 12 2,294 1,481 825 77,268 79,574IRRT 1,976 1,263 713 2,173 (197) 26,581 28,557NMRT 2,835 1,034 1,801 3,057 (222) 87,612 90,447LRRT 1,947 (6,570) 8,517 1,942 5 61,653 63,600MAGIRT 1,562 2,105 (543) 1,855 (294) 41,328 42,890SRRT 1,895 2,418 (524) 1,040 854 64,726 66,621SORT 118 269 (151) 106 12 20,496 20,614LIRT 4,980 1,427 3,553 5,222 (241) 146,151 151,131EMIERT (3,014) 2,251 (5,265) 8,064 (11,079) 512,583 509,569CLENERT 1,528 1,298 230 1,524 4 102,476 104,004RMRT 829 376 453 1,768 (939) 8,470 9,299GGRT 823 753 70 528 295 9,301 10,124VRT 805 1,153 (348) 725 81 22,673 23,478SSIRT 665 659 7 3,545 (2,880) 36,348 37,013GLBTRT 2,414 2,139 275 1,509 904 24,680 27,094SRT 315 465 (149) 69 246 643 958TOTAL 34,007 11,503 22,504 40,914 (6,907) 1,470,951 1,504,958

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