From the 1999-2000 Treasurer's Report at the 2000 Annual Business Meeting
I am happy to report that fiscal year 1999 was closed in a positive financial position. The Association has implemented many new cutting-edge products and services. From a membership standpoint, this is the ideal situation. From the treasurer's standpoint, this is often a costly situation. My job is to ensure that we adequately balance the expenditures with the revenues, and I can assure you that this was indeed the case.
The rate of growth in non-dues revenue increased from last year while the growth in membership remained relatively flat. Forecasting this position through financial trend analysis, staff conscientiously developed a financial contingency plan for 1999 to offset the potential losses which were originally estimated at more than $300,000. The General Fund closed in a positive earnings position of $33,823.
At the close of 1999, the Association's financial records and statements were audited by the independent accounting firm of Langan Associates, P.C. SLA's audited statements for 1999 report total assets of $9,339,924; total liabilities of $2,610,014; total revenues of $5,999,487; total expenses of $5,561,623; and total net assets of $6,729,910.
The total audited fund balances at December 31, 1999 were as follows:
General Fund$1,704,155
General Reserve Fund$2,807,575
Information Technology Fund$111,926
Building Reserve Fund$500,358
Scholarship Fund$434,560
Non-Serial Publications Fund$34,739
SLA Endowment Fund$680,819
Steven I. Goldspiel Memorial Research Fund$145,933
Coplen Fund$42,402
Global 2000$192,443
Temporarily Restricted Pledges$75,000
The investment portfolio for 1999 responded to the market volatility. On a positive note, we realized an overall investment return of more than 7.5%. The Association's investment portfolio is currently at a market value of $6.3 million, with a cost basis of $5.8 million. The portfolio remains conservatively balanced with cash and cash equivalents, fixed income, and equities. In April the Finance Committee met with the investment advisors and the outlook for investment earnings in 2000 is very good.
As mentioned earlier, the Association has invested in providing cutting-edge products and services to the membership. During 1999, 9% more was spent on membership services than in 1998. A total of $5,561,623 was spent on delivering programs and services to the membership, accounted for as follows:
Allotments to Chapters, Divisions, Caucuses, and Student Groups7%
Membership Recruitment and Retention6%
Publications14%
Conferences and Meetings22%
Professional Development10%
Public Affairs10%
Leadership Services15%
Other Programs and Services16%
The average cost to provide service to one member is $228.01, including both program and administrative costs. Therefore, for each SLA member an additional $107.93 of non-dues income must be generated to provide SLA's current levels of products and services. This amount has increased significantly between 1999 and 2000 due to the level of service provided to the membership (especially in publications, annual conference, professional development, leadership, and research) and the investments made in advancing technologically.
The FY 2000 Budget includes a total gross income of nearly $9 million. This represents a significant 31% increase, or $2.1 million, over the FY 1999 Budget. This is due primarily to the increased projected income in the areas of Advertising, Annual Conference, Fund Development, and Global 2000.
As we begin the process of assembling the FY 2001 Budget, the Board of Directors, Finance Committee, and staff will continue to look carefully at the issues raised by the IRS and the focus of the Congressional activities on not-for-profit organizations. The Association has developed financial assumptions and long-range plans, based on trends and other fiscal analysis, which will guide us through the next three to five years.
In 1999, the Board of Directors accepted the updated long-range financial plan. The long-range plan was initiated by the Finance Committee in 1997 to counter ongoing financial projections which consistently demonstrate that the SLA financial cycle includes significant deficits every three to four years unless specific action is taken to decrease expenses and increase income. Through the implementation of the long-range financial plan, the Association has achieved its goal of developing and delivering cutting-edge products and services to the membership while maintaining a balanced budget.
And I assure you that the staff, Finance Committee, and Board of Directors remain committed to the ongoing revision of the plan to ensure the continued financial health and stability of the Association.
As reported by Richard Wallace at the Annual Business Meeting, Philadelphia, Pennsylvania.
For more information, contact Richard Geiger (geiger@sfgate.com).
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