NSPE General Fund Results The following slides address the three major components of NSPE operations and their impact on the operating deficit: –Revenue –Direct Program Expenses –Staff & Administrative (support) Costs
General Fund Operating Results Variances Revenue($272.9) Expense Staff/Admin (198.1)
Breakdown of Revenue (in millions)
Dues Revenue Dues revenue shortfall of $266, shortfall: a significant variance from budget, but loss in membership is less than in previous two years. (trend bottoming out?) Following chart shows 5-year trend in dues revenue.
5-Year Dues Revenue Trend Change by Year 2004$ 24, (135,900) 2006(201,000) 2007 (37,200) No changes to dues rates
Non-Dues Revenue In essence, we achieved our budget of $3.3 million in non-dues revenue There were significant variances in individual programs, but they tended to offset one another. Following charts provide more details on non-dues revenue.
Non-Dues Revenue Components
Non-Dues Revenue Programs Results for Top 5
Expenses Overall, expenses were controlled. Total expenses were $59,117 less than budget Direct expenses were $257,217 less than budgeted Staff & Administrative costs were $198,100 over budget
Direct Program Expenses $257,217 in savings were spread throughout almost all programs Savings achieved in spite of spending that was not budgeted for: –SSEC / National Staff Retreat$26,000 –Jump Start Fund Requests$61,400 –Conclusion of Member Survey$17,100 –Executive Search Committee$11,000
Staff & Support Costs Overrun of $198,100 is due to several factors: –Heavy reliance on temps, especially in first months of year, to clean up the dues processing backlog and get us back on track. –Severance package to former Executive Director –Rapid growth of online transactions, especially dues payments (credit card fees range from 2.75% to 4% of transaction total)
Conclusion Trends identified in earlier reports continued through the fourth quarter of operations We continue to experience a revenue decline, and this was the major factor in sustaining the FY 2007 operating deficit.
Looking Forward Our major challenge is to increase current revenue streams and to find new ones We budgeted for flat dues revenue in 2008, carrying the 2007 budget forward The actual shortfall of $266,700 in dues revenue presents a stiff challenge to make up for in our new year. We must recruit aggressively & be cautious in our spending.
Recommendation That a transfer be approved from the NSPE Reserve Fund to the NSPE Operating Fund that is sufficient to cover the fiscal year 2006/07 operating deficit, approximately $270,289.