Tab E

ASLA Board of Trustees

November 20-21, 2014, Annual Meeting

Centennial D, Hyatt Regency

Denver, CO

Agenda Item #8: 2015–2016 Operating Budgets / Information
Purpose: To present for review the 2015 and 2016 budgets.
Background: The annual budget is developed as a draft eighteen months out and is revised and given final approval by the BOT at the fall meeting preceding the start of the year. The Annual Operating Plan (AOP) is approved by the Board at the same time. The budget and the AOP respond to ExCom and BOT priorities and program review, ongoing management/staff review of program and budget performance, and other strategic planning discussions. The revisions to the 2015 proposed budget described below are the results of the Society’s program planning and budget review process.
Overview / 2014 Approved / 2015 Draft / 2016 Planning
Total Income / 11,686,000 / 12,005,000 / 12,005,000
Expense – Salary/Benefits / 4,961,000 / 5,176,000 / 5,176,000
Expense – Program / 6,625,000 / 6,528,000 / 6,528,000
Total Expense / 11,586,000 / 11,704,000 / 11,704,000
Increase in net assets (net income) / 100,000 / 301,000 / 301,000
2014 Operational Update: Through September 30, 2014, the loss of approximately $1 million compares favorably to the budgeted loss of $1.2 million. A significant portion of the Society’s change in net assets each year (net income or loss) is derived from the annual meeting. ASLA follows the completed-show method of accounting, which requires it to defer both income- and expense-related items directly attributable to the annual meeting until its completion. The majority of expenses, such as salaries, are recorded equally each month, so it is usual for the change in net assets to be negative (net loss) until the meeting concludes in November.
2015 Budget Revisions: The 2015 draft budget reflects changes made to the 2015 planning budget presented to the Board during last year’s annual meeting in Boston. Management’s changes are discussed below:
§  Revenue increase of $110,000 related to the Society’s three percent dues increase of $10 (full/affiliate) and $5 (emerging professional/ student).
§  A three percent increase in all revenue producing activities or approximately $200,000.
§  Creation of a three-percent salary pool of $125,000 for merit increases.
§  Set-aside $90,000 to cover the 25-percent percent increase in health insurance premiums (represents an 11-percent increase in the fringe benefits budget).
§  Enhance federal advocacy efforts with $25,000 to leverage expertise on priority issues in support of advocacy goals and to ensure ASLA is at the forefront of professional matters of critical importance, including conferences, symposia, and coalitions.
§  Decrease of $150,000 of building interest related to the payoff of the building mortgage.
In 2010, the Executive Committee introduced the use of financial triggers. A financial trigger could only be executed to the extent net income for that year exceeds the approved or revised amount. Financial triggers are continued in 2015 and 2016 as follows:
§  Restore the employee bonus pool; estimated to be approximately $75,000.
§  Restore the employer contribution (two-percent contribution plus two-percent match) to the staff’s 401(k) plan balance; estimated to be approximately $165,000.
Revenue / 2014 Approved / 2015 Draft / 2016 Planning
Finance and Building Operations / 100,000 / 103,000 / 103,000
Member and Chapter Services / 3,667,000 / 3,776,000 / 3,776,000
Meetings and Special Programs / 3,850,000 / 3,950,000 / 3,950,000
Education and Academic Affairs / 169,000 / 169,000 / 169,000
Professional Practice / 70,000 / 87,000 / 87,000
Landscape Architecture Magazine / 3,130,000 / 3,200,000 / 3,200,000
Publishing and Resource Development / 700,000 / 720,000 / 720,000
Total Revenue / 11,686,000 / 12,005,000 / 12,005,000
Revenue: The Finance and Building Operations program area is budgeted to generate one percent of ASLA’s revenues. The $103,000 in both 2015 and 2016 represent realized investment returns net of investment advisory fees. Items included would be interest on the short- and long-term reserves and dividends paid.
Member and Chapter Services contributes approximately 32 percent of ASLA’s revenues; membership revenues currently fall below the levels set in the 2014 budget by three percent. Recently membership initiated a renewal campaign contacting approximately 10,000 lapsed members. The results of the membership drive should be available at the annual meeting in Denver.
Meetings and Special Programs generates approximately 33 percent of ASLA’s revenues and manages all the activities associated with the annual and special meetings. The 2015 annual meeting being held in Chicago is conservatively budgeted to be in line with 2014. Historically, exhibit sales represent approximately 62 percent of meeting income while registrations and ticketed events are expected to contribute 32 percent, with sponsorships and bookstore sales accounting for the balance.
Education and Academic Affairs is budgeted to generate one percent of ASLA’s revenues and includes the revenue associated with the Landscape Architecture Accreditation Board (LAAB) and Landscape Architecture Continuing Education System. [Note: LAAB revenues are restricted funds used for the operation of LAAB, an autonomous committee of ASLA.]
Professional Practice generates one percent of revenues from the ASLA National Salary and Business Indicators Surveys, LATIS reports, continuing education programs, and other business tools and resources necessary to support the profession.
Landscape Architecture Magazine generates 27 percent of ASLA’s revenues by producing a high-quality magazine that contributes to the profession’s core body of knowledge and enhances the image of the profession. The revenue attributable to the magazine is subject to unrelated business income tax and is generated primarily from advertising sales and has been budgeted at the 2014 levels plus a projected three percent increase for a total of $2,870,000 in 2015 and in 2016. Paid circulations are expected not to change and contribute $330,000 in 2015 and 2016.
The Publishing and Resource Development program area is budgeted to generate six percent of ASLA’s revenues and accounts for corporate memberships, JobLink (subject to unrelated business income tax), and honors and awards.
Expense / 2014 Approved / 2015 Draft / 2015 Planning
Executive Offices / 482,000 / 482,000 / 482,000
Finance and Building Operations / 1,116,000 / 966,000 / 966,000
Member and Chapter Services / 494,000 / 494,000 / 494,000
Government Affairs / 212,000 / 237,000 / 237,000
Meetings and Special Programs / 2,100,000 / 2,100,000 / 2,100,000
Education and Academic Affairs / 173,000 / 173,000 / 173,000
Professional Practice & IT / 240,000 / 268,000 / 268,000
Landscape Architecture Magazine / 1,323,000 / 1,323,000 / 1,323,000
Publishing and Resource Development / 168,000 / 168,000 / 168,000
Public Relations and Communications / 317,000 / 317,000 / 317,000
Direct expense / 6,629,000 / 6,528,000 / 6,528,000
Salary and fringe benefits / 4,961,000 / 5,176,000 / 5,176,000
Total Expense / 11,586,000 / 11,704,000 / 11,704,000
Direct Expense: The Executive Offices account for approximately four percent of operating expenses and manage the ASLA’s governance, oversight, and organizational liaison activities, including Executive Committee and the Board of Trustees expenses.
Finance and Building Operations activities represent approximately eight percent of operating expenses and include the accounting for office administration, accounting services, and building operations. With the payoff of the mortgage in 2014, there is no longer a need for $150,000 of interest expense.
Member and Chapter Services accounts for approximately four percent of operating expenses and works directly with the membership and the chapters by administering the budgets for Chapter services, CPC meetings, and Chapter visits.
Government Affairs represents two percent of the operating budget and partners with governmental, legislative, and advocacy organizations to increase ASLA’s visibility, credibility, and effectiveness. Areas of focus include the iAdvocate Network, the annual Advocacy Day, and the Licensure and Advocacy Summit. The $25,000 increase in 2015 will help the department promote critical ASLA policies through representation at conferences, symposia, and coalitions.
Meetings and Special Programs plans and produces the annual meeting, which offers high-quality educational programming and networking opportunities for the membership. Approximately 18 percent of ASLA’s operating expenses are attributable to the annual meeting.
Education and Academic Affairs manages approximately two percent of ASLA’s operating expenses and promotes landscape architecture as a career, manages portions of the LA CES project, and the Landscape Architectural Accreditation Board.
Professional Practice & IT represents approximately two percent of operating expenses and provides landscape architects with professional and business tools and resources to support private practice. Information Technology (IT) manages the ASLA network and maintains the information systems utilized by staff and membership and accounts for approximately one percent of ASLA operating expenses.
Landscape Architecture Magazine serves as a forum for the discussion of key issues affecting the practice of landscape architecture and represents 11 percent of ASLA’s operating expenses. The magazine includes associated costs of editorial content, circulation, and production and advertising commissions.
Publishing and Resource Development accounts for approximately one percent of ASLA’s operating expenses and administers JobLink, FirmFinder, Corporate Member, and the honors and awards program.
Public Relations and Communications represents approximately three percent of operating expenses and serves to increase awareness of, and appreciation for, landscape architects and landscape architecture among client groups, public policy makers, allied professionals, media and the general public.
Salary and Fringe Benefits represents 44 percent of the budget and accounts for the staff salaries and fringe benefits. As discussed above, the proposed salary increases of $125,000 is included in the salary budget for 2015 and 2016. An increase of $90,000 is included in 2015 and 2016 to cover the increase in health insurance premiums. A full assessment of healthcare options will be conducted at the end of 2015 when the Affordable Care Act is operationally in Washington, DC.
Governing Rules/Procedures: ASLA Bylaws, Section 801: …The Board of Trustees shall…adopt the annual operating plan and budget…
Action Requested: Review for approval of the Draft 2015 and Planning 2016 budgets with 2015 Annual Operating Plan.
Staff Contact: Michael O’Brien

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