Action Requested/Information/Discussion/Report

PLA Board of Directors Fall Meeting 2017 2018.21 TO: PLA Board of Directors

RE: Revisions to the Fiscal Year 2018 Budget

ACTION REQUESTED/INFORMATION/DISCUSSION/REPORT: ACTION

ACTION REQUESTED BY: Clara Bohrer, Budget & Finance Committee Chair Barb Macikas, Executive Director

DRAFT OF MOTION: That based on the recommendation of the PLA Budget & Finance Committee chair and staff, the PLA Board of Directors approve the revised FY 2018 FY budget as presented.

BACKGROUND: The PLA Board of Directors approved PLA’s FY18 budget during the 2017 Annual Conference in June 2017. The draft presented was developed in May 2017. The FY 2018 budget was revised significantly in August 2017.

PLA’s net general fund revenue was changed because of the following revisions.  The PLA 2018 Conference Virtual Conference (3173) was zeroed out in the last draft, but has been added back in, which adds a small amount of net revenue.  Due to the timing of both getting and setting up the Inclusive Internships Initiative (III) (3185) grant project, neither the grant funding nor the cost share was presented in the last draft. These are now added. The cost share is approximately $148,000, which negatively affects PLA’s net revenue for FY18. These changes and other minor adjustments reduced the amount of net revenue for FY18 from the $384,952 presented in June to $168,176. This is significantly lower than the more than $1 million net revenue generated in FY16. Conservative budgeting, higher conference expenses due to the Philadelphia location (as reported previously), and the addition of the III cost share are the primary factors.

PLA’s net general fund revenue DID NOT change because of the following revisions.  New general fund projects - Family Engagement (3072) and Equity, Diversity and Inclusion (3073) – were not assigned project codes until August 2018, and were not able to be included in the last draft. Both projects are budgeted to break even and have no impact on the bottom line.  A new project - NNLM/UofIowa Healthy Communities (3186) – was created and $180,833 in revenue/expenses was budgeted based on anticipation of the new grant.  The anticipated $2.9 million grant from the Bill and Melinda Gates Foundation was entered based on anticipation of an early FY18 contract and payment. ALA Finance created a new Proposals (1000) project line to allow units and offices to budget for anticipated funding. For FY18, $474,000 in revenue/expenses was budgeted in this project.  Budgeted funds for Project Outcome (3190) were reduced based on a more current assessment of remaining grant funds, and funds budgeted for African Leadership Training (3176) were revised to match the contract developed with AfLIA. Due to the above changes, the most significant difference between the budget presented in June and the current budget concerns PLA’s grant revenue, which rose from $2,349,702 to $2,827,424.

General Fund Projects and Conference Only 1 of 2 PLA Board of Directors Fall Meeting 2017 2018.21

FY12 Actual FY13 Actual FY14 Actual FY15 Actual FY16 Actual FY17 FY18 Draft Budget* Budget Beginning $1,049,598 $2,129,598 $1,769,722 $3,062,236 $2,423,817 $3,457,211 $2,642,538* Fund Balance Revenues $4,243,107 $868,334 $4,180,523 $802,514 $4,370,846 $1,120,270 $4,737,109

Expenses $2,363,924 $1,172,344 $2,100,044 $1,392,485 $2,497,599 $1,860,892 $3,686,831

Overhead $799,655 $55,304 $787,965 $48,433 $833,697 $74,071 $882,102

Total $3,163,579 $1,227,648 $2,888,009 $1,440,918 $3,335,296 $1,934,963 $4,568,933 Expenses Net $1,079,528 $(359,314) $1,292,514 $(638,404) $1,035,550 $(814,693) $168,176

Ending Fund $2,129,052 $1,769,722 $3,062,236 $2,423,817 $3,457,211 $2,642,518 $2,810,714 Balance *Based on FY17 Budget, not actuals.

Also of note, PLA’s contribution to ALA overhead rose significantly between drafts of the FY18 budget. It now includes $882,102 in general fund projects and $433,922 in grants, totaling $1,316,024. The increase is disproportionate to the amount of funding added to PLA’s FY18 budget, because ALA will take approximately half of the full amount of indirects off the new $2.9 million Gates grant in FY18, rather than wait and assess them as funds are spent.

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