I co-presented on this topic at the American Society of Association Executive\'s FHRBOC conference on May 13, 2011.

1. The Latest Trends in
Th L t t T d i
Presenting Financial
g
Information

2. Agenda
• Introductions
• Financial information basics
• Traditional financial reports
di i l fi i l
• Needs of management (address KPI’s here)
• Needs of Board and Committees (address KPIs)
• Reports to meet these needs
Reports to meet these needs
• Software alternatives

3. Financial Information Basics
Financial Information Basics
• Appropriate information
• Timely information
i l i f i
• Effective information
• Key performance indicators (KPIs)

4. Traditional Financial Reports
Traditional Financial Reports
• Statement of financial position
• Statement of activities
S f i ii
• Statement of cash flows
• Narrative

5. Traditional reports:
statement of financial position
Foundation for the Widening of Television Screens
Statement of Financial Position
As of December 31,
2010 2009
ASSETS
CURRENT ASSETS
Cash $ 4,847,203 $ 2,082,306
Investments 8,681,362 7,114,572
Accounts Receivable 1,320,870 1,415,673
Grants Receivable - short term 1,386,865 2,298,248
Prepaid Expenses 1,165,914 784,239
Due From Foundation 130,588 164,422
Publication Inventory 287,778 297,696
TOTAL CURRENT ASSETS 17,820,580 14,157,156
FIXED ASSETS
Membership Database 2,433,462 2,315,187
Office Furniture & Equipment 346,540 337,965
Computer Equipment 831,501 817,542
Accumulated Depreciation ( 2,416,104 ) ( 1,612,269 )
TOTAL FIXED ASSETS 1,195,399 1,858,425
Grants Receivable - long term 2,773,730 4,596,496
TOTAL ASSETS $ 21,789,709 $ 20,612,077
LIABILITIES & NET ASSETS
CURRENT LIABILITIES
Accounts Payable $ 544,344 $ 486,483
Accrued Expenses 514,068 446,040
Deferred Income-Individual 695,553 513,378
Deferred Income-Program 3,873,567 2,914,791
Deferred Income-Accreditation Fees 1,012,404 1,238,535
Note Payable - short term portion 313,701 301,356
TOTAL CURRENT LIABILITIES 6,953,637 5,900,583
NON-CURRENT
NON CURRENT LIABILITIES
Deferred Rent 50,202 57,138
Note Payable - long term portion 664,856 992,902
TOTAL NON-CURRENT LIABILITIES 715,058 1,050,040
TOTAL LIABILITIES 7,668,695 6,950,623
NET ASSETS
Beginning of Year:
Permanently Restricted 1,505,991 1,505,991
Temporarily Restricted 7,678,245 4,399,380
Unrestricted 4,477,218 8,651,407
Total Beginning of Year Balance: 13,661,454 14,556,778
Current-year Change in Net Assets 459,560 ( 895,324 )
TOTAL NET ASSETS 14,121,014 13,661,454
TOTAL LIABLITIES AND NET ASSETS: $ 21,789,709 $ 20,612,077
For Management's Internal Use Only

6. Traditional reports: statement of
activities Foundation for the Widening of Television Screens
Statement of Activities
For the Twelve Months Ended
December 31,
2010 2009 Increase/ % Increase/ Annual (Under)/Over Budget %
YTD Actual YTD Actual (Decrease) (% Decrease) Budget Variance Variance
REVENUE:
Contributions $ 3,680,748 $ 5,063,205 $( 1,382,457 ) -27% $ 3,750,000 $ ( 69,252 ) -2%
Grants 559,920 1,074,639 ( 514,719 ) -48% 510,000 49,920 10%
Membership Dues 1,701,891 1,948,802 ( 246,911 ) -13% 1,854,727 ( 152,836 ) -8%
Program Dues 7,084,414 7,034,067 50,347 1% 6,680,000 404,414 6%
Accreditations 61,017 160,521 ( 99,504 ) -62% 204,945 ( 143,928 ) -70%
Registrations 2,342,544 2,566,305 ( 223,761 ) -9% 2,145,000 197,544 9%
Sponsorships
p p 47,250
, 130,050
, ( 82,800 )
, -64%
% 40,500
, 6,750
, 17%
%
Exhibits 274,350 241,995 32,355 13% 405,000 ( 130,650 ) -32%
Publications 528,435 628,227 ( 99,792 ) -16% 676,500 ( 148,065 ) -22%
Royalties 34,653 47,892 ( 13,239 ) -28% 76,200 ( 41,547 ) -55%
Administrative 947,748 1,008,711 ( 60,963 ) -6% 977,049 ( 29,301 ) -3%
Advertising 255,273 323,466 ( 68,193 ) -21% 344,400 ( 89,127 ) -26%
Interest & Dividends 192,756 344,211 ( 151,455 ) -44% 195,000 ( 2,244 ) -1%
Realized Gains/(Losses) 441,120 ( 138,646 ) 579,766 - - 441,120 -
Other 37,143 42,294 ( 5,151 ) -12% 59,700 ( 22,557 ) -38%
TOTAL REVENUE: 18,189,262 20,475,739 ( 2,286,477 ) -11% 17,919,021 270,241 2%
EXPENSES:
Salaries 5,852,463 5,688,918 163,545 3% 5,615,055 237,408 4%
Benefits 1,331,637 1,281,075 50,562 4% 1,228,392 103,245 8%
Training and development 428,361 450,267 ( 21,906 ) -5% 424,000 4,361 1%
Advertising and promotion 150,825 256,509 ( 105,684 ) -41% 171,000 ( 20,175 ) -12%
Stipends/tuition 1,913,888 2,651,226 ( 737,338 ) -28% 2,660,000 ( 746,112 ) -28%
Facilities and equipment 136,500 96,462 40,038 42% 108,000 28,500 26%
Postage and delivery 98,724 113,511 ( 14,787 ) -13% 93,750 4,974 5%
Printing and production 315,360 452,394 ( 137,034 ) -30% 421,200 ( 105,840 ) -25%
Supplies 488,448 426,528 61,920 15% 445,197 43,251 10%
Telephone and utilities 220,353 162,390 57,963 36% 126,000 94,353 75%
Travel
T l 580,441
580 441 498,747
498 747 81,694
81 694 16% 510,000
510 000 70,441
70 441 14%
Other 1,002,909 733,536 269,373 37% 181,500 821,409 453%
Professional fees 1,936,629 2,217,039 ( 280,410 ) -13% 1,036,899 899,730 87%
Occupancy 1,593,009 1,523,250 69,759 5% 1,673,358 ( 80,349 ) -5%
Depreciation 503,835 556,719 ( 52,884 ) -9% 483,045 20,790 4%
Temporary assistance 48,072 73,167 ( 25,095 ) -34% 45,000 3,072 7%
Insurance 53,040 52,500 540 1% 51,000 2,040 4%
Commission expense 336,324 377,649 ( 41,325 ) -11% 315,300 21,024 7%
Subscriptions and pubs 50,892 55,134 ( 4,242 ) -8% 41,400 9,492 23%
Meetings and conventions 1,510,614 2,129,622 ( 619,008 ) -29% 1,102,800 407,814 37%
Bank fees 86,529 94,905 ( 8,376 ) -9% 60,000 26,529 44%
Grants
G t 196,608
196 608 479,414
479 414 ( 282 806 )
282,806 -59%
59% 154,000
154 000 42,608
42 608 28%
Bad debts 140 200,000 ( 199,860 ) - - 140 -
TOTAL EXPENSES: 18,835,601 20,570,962 ( 1,735,361 ) -8% 16,946,896 1,888,705 11%
CHANGE IN NET ASSETS FROM OPS ( 646,339 ) ( 95,223 ) ( 551,116 ) 579% 972,125 ( 1,618,464 ) -166%
UNREALIZED GAINS/(LOSSES) 1,105,899 ( 800,101 ) 1,906,000 - - 1,105,899 -
TOTAL CHANGE IN NET ASSETS: $ 459,560 $ ( 895,324 ) 1,354,884 -151% $ 972,125 $ ( 512,565 ) -53%
For Management's Internal Use Only

7. Traditional reports: statement of
cash flows
Foundation for the Widening of Television Screens
Statement of Cash Flows
For the Twelve Months Ended
December 31,
2010 2009
YTD Actual YTD Actual
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets $ 459,560 $ ( 895,324 )
Adjustments to Reconcile Change in Net Assets to Net
Cash Provided by Operating Activities:
Depreciation 503,835 556,719
Bad Debts 140 200,000
200 000
Unrealized (Gain) Loss on Investments ( 1,105,899 ) 800,101
Realized (Gains) Losses on Sale of Investments ( 441,120 ) 138,646
Change in Assets and Liabilities:
Accounts Receivable 94,803 ( 341,824 )
Grants Receivable - short term 911,383 131,832
Prepaid Expenses ( 381,675 ) 118,299
Due From Foundation 33,834 ( 30,991 )
Publication Inventory 9,918 ( 29,883 )
Grants Receivable - long term 1,822,766 ( 678,221 )
y
Accounts Payable 57,861 65,998
Accrued Expenses 68,028 41,662
Deferred Income-Individual 182,175 ( 365,892 )
Deferred Income-Program 958,776 ( 723,119 )
Deferred Income-Accreditation Fees ( 226,131 ) ( 114,782 )
Deferred Rent ( 6,936 ) ( 8,281 )
Net Cash Provided by (Used in) Operating Activities 2,941,318 ( 1,135,060 )
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Property and Equipment ( 156,921 ) ( 82,991 )
Purchases of Investments ( 811,930 ) ( 548,792 )
Proceeds from Sale of Investments 1,093,786 759,042
Net Cash Provided by Investing Activities 124,935 127,259
CASH FLOWS FROM FINANCING ACTIVITIES
Principal Payments on Note Payable ( 301,356 ) ( 285,411 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,764,897 ( 1,293,212 )
Cash and Cash Equivalents - Beginning of Year 2,082,306 3,375,518
Cash d C h E i l t E d f Y
C h and Cash Equivalents - End of Year $ 4 847 203
4,847,203 $ 2 082 306
2,082,306
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Year for Interest $ 228,663 $ 244,882
Cash Paid During the Year for Income Taxes $ 25,792 $ 38,211
For Management's Internal Use Only

8. What Governing Boards Need
What Governing Boards Need
“governing boards do not need more reports
or more information. What they do need is
or more information What they do need is
more meaning”
Lawrence Butler

9. Needs of management
Needs of management
• Key performance indicators:
Key performance indicators:
– Mission‐driven
– Tie back to strategic planning
Tie back to strategic planning
– Operationally relevant
–MMeasurable
bl
– Financial and/or non‐financial
– Diff
Different for each organization
f h i i

10. Needs of management
Needs of management
• Mission‐driven
Mission driven
• Are we doing what we’re supposed to be doing?
• Tied to strategic planning
Tied to strategic planning
• Are the tactics advancing the plan?
• Operationally relevant
Operationally relevant
• What’s actually going on? – Registrations coming
in later, giving patterns changing, AR growing?
• What isn’t showing up?

11. Needs of management
Needs of management
• Measurable
• Original goals compared to current reality
• Financial and/or non‐financial
Financial and/or non‐financial
• Cash on hand and cash flow projection
• Actual member numbers, renewal/retention rate
, /
• Duration of pledges, percentage collected
• Timeframe for multi‐year grants
• Organizations are different
• Culture affects how people look at financial
reports

12. Needs of boards:
Summarized data & KPI
• Diversity of background and expertise makes board
Diversity of background and expertise makes board
reporting complicated
• Volunteer leadership have day jobs; time is precious
p yj ; p
and must be respected.
p g p g
• Can provide high‐level dashboard reporting with
detailed supplemental information
• Reporting should be focused on strategic areas
rather than operational areas. Non‐financial
information becomes more important.

13. Needs of boards
Needs of boards
• Boards see numbers and dollars through
Boards see numbers and dollars through
different lens
• Timely information is key especially if there is
Timely information is key, especially if there is
bad news
• D hb d h d il
Dashboards show detail at a glance – i
l i.e. what
h
makes up a particular revenue or expense line
• Linking strategic plan to actual goals to
numbers is critical – but often is the bridge
too far for some boards

14. Needs of management:
Basic financial data
Good information – can we learn more?
Good information can we learn more?

15. Needs of management:
Visualization of data
Cash balances drop in May – good to Balances are influenced by market
know for planning
know for planning forces, but also by withdrawals
forces but also by withdrawals

16. Needs of management:
Basic financial data
Good information, but can we learn more about receivables?
Good information but can we learn more about receivables?

17. Needs of management:
Visualization of data
Year‐to‐year comparison
Year to year comparison Current‐year composition
Current year composition

18. Needs of management:
Basic financial data
f ld
What do we need to know about our liabilities?
What do we need to know about our liabilities?

19. Needs of management:
Visualization of data
When will the revenue be
How old are the payables?
How old are the payables? recognized?

20. Needs of management:
Basic financial data
f ld
Membership is down, but why?
Membership is down but why?

21. Needs of management:
Visualization of data
Stacked bar chart – helps to get a Line chart – easy to see trends for
sense of the total volume
sense of the total volume each category
each category

22. Needs of management:
Basic financial data
f ld
Why are event registrations lower?
Why are event registrations lower?

23. Needs of management:
Visualization of data
Total registrations by weeks out – Registrations by category – looks
what happened at the end?
what happened at the end? like all categories were affected.
like all categories were affected

24. Data visualization applications
Data visualization applications
• Microsoft Excel:
Microsoft Excel:
– 2007 and 2010 versions have better charting
capability
– You already have it on your computers; no
additional purchase necessary
additional purchase necessary
– Data are not automatically refreshed; no real‐time
reporting capability
p g p y
– Can be labor‐intensive to set up

25. Data visualization
applications
• NetCharts performance dashboards
NetCharts performance dashboards
• Tableau
• Dundas
d
• Xcelcius
• QlikView

26. Data visualization
applications
• Web based
Web‐based
• Real‐time connectivity/automatic refresh
• Connectivity to diverse databases
C i i di d b
• Ease of use/comfortable interface
• Technical knowledge required?
• Customizable views/charting
Customizable views/charting

27. Implementation Suggestions
Implementation Suggestions
• Less is more
• Work with readily available data
k ih dil il bl d
• Assess the reader’s readiness
• Carefully choose what you present

28. Contact Information
Contact Information
Anna Hofmeister, CPA
Partner – Outsource Services
Tate & Tryon CPAs and Consultants
Phone: (202) 419‐5103 Nathan Perrine, CPA MBA
Email: ahofmeister@tatetryon.com
l h f Chief Financial Officer, Accounting
h f l ff
Website: www.tatetryon.com Services Clients
Tate & Tryon CPAs and Consultants
Joanne E. Dunne, CAE
Joanne E Dunne CAE Phone: (202) 419‐5154
Phone: (202) 419 5154
Interim Executive Director Email: nperrine@tatetryon.com
National Council of Catholic Women Website: www.tatetryon.com
Phone: (703) 224 0990
Phone: (703) 224‐0990
Email: jdunne@nccw.org or
lyonsgroup@aol.com
Website: www.nccw.org g