Board of Directors Agenda Item. Title: Third Quarter Financial Report (July 2014 through March 2015) Agenda Item Number: 4.4

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Board of Directors Agenda Item

Consent Agenda

Main Agenda

Title:

Third Quarter Financial Report (July 2014 through March 2015)

Agenda Item Number:

4.4 Issue Statement:

A high level summary of NSPE’s financial operations for the

first three quarters of FY 2015 (July 1, 2014 through March 31,

2015) are presented.

Background:

The NSPE Treasurer, working in conjunction with NSPE

financial staff leadership, has established the attached

flowchart

for the regular reporting, review and distribution of financial

reports to NSPE (NSPE core and NICET), and the Finance

Department’s client entities (NSPE Education Foundation and

National Engineers Week Foundation, d.b.a. DiscoverE). NSPE

is currently meeting the deadlines established in that chart.

NSPE financial staff considers these deadlines

minimum

performance standards. Process improvements are being

implemented that we are confident will reduce financial

reporting times even further, to below the deadline

commitments.

For NSPE, the reporting process includes:

1. Regular, monthly financial reports to the Treasurer and

appropriate staff leadership; and

2. Quarterly overview reports and analysis to the full Board

of Directors.

The third quarter

NSPE Treasurer’s Report

is attached, along

with the

supporting detail

.

Because of the Board and Executive Committee’s recent focused

involvement on finances, as it engaged budget development and

approval, this regular third quarter provides little new

information or insight from discussions on the last Board

conference call (April 29

th

_).

It should be noted that the new chief staff financial officer is

currently engaged in comprehensive revisions of the Chart of

Accounts, which will enable the development of more useful and

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understandable financial reports and more in-depth and

actionable analysis in the future.

Nature of Action

Required:

MOVED: That the NSPE Board of Directors accepts the

Treasurer’s report for the nine months ending march 31. 2015,

as presented.

Attachments:

1. Financial Reporting Protocol for NSPE and Related Entities

2. NSPE Treasurer’s Report (May 27, 2015)

3. NSPE Statement of Activities & Statement of Financial Position for

the Nine Months Ending March 31, 2015

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State Dues & Net

Forum Closed

NSPE & NICET

Month End Close

DiscoverE Month

End Close

Month End Close

Ed Foundation

Financial

Statements

Financial

Reviewed By NSPE

Treasurer & Exec

Director

Financial

Statements

Reviewed by

DiscoverE Staff &

Treasurer

Reviewed by Ed

Foundation

Treasurer

Prior Month Activity

Month End Reports for Staff

(Controller notifies staff via email, reports now available on shared drive)

Completed by 10th

Completed by 11th Business Day

Financials Disbursed by the Last

Business Day of the Month

BOA Quarterly

Compliance Reports

Reviewed By NSPE CFO

Completed by 21st Business Day

Financials Disbursed by the Last

Business Day of the Month

45 Days After Quarter End

Last Business Day of the Month

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AUDITED

3/31/2015

6/30/2014

*

6/30/2013

*

CURRENT

ASSETS

Cash

$

3,379,176

$

2,298,954

$

1,808,707

Investments

3,639,973

4,130,341

4,702,735

Receivables

188,544

108,549

71,249

Receivables

‐

Affiliates

220,412

240,279

162,070

Prepaids

and

Other

324,689

201,906

221,707

Totals

7,752,794

6,980,029

6,966,467

FIXED

ASSETS

Land

1,548,075

Building

7,763,118

7,742,583

7,648,974

Furniture

468,499

465,773

Equipment

2,181,593

2,171,214

2,022,877

Accumulated

Depreciation

(7,416,370)

(7,133,556)

(6,776,750)

Totals

4,544,915

4,794,089

4,908,950

OTHER

ASSETS

Financing

2,577

Deposits

‐

TOTAL

OTHER

ASSETS

2,577

TOTAL

ASSETS

$

12,300,285

$

11,776,695

$

11,877,994

*Includes

Audit

Adjustments

NATIONAL

SOCIETY

OF

PROFESSIONAL

ENGINEERS

STATEMENT

OF

FINANCIAL

POSITION

These

financial

statements

were

prepared

on

the

accrual

basis

of

accounting

by

Tate

Tryon,

CPAs,

in

conjunction

with

ongoing

outsourced

accounting

services.

The

statements

were

not

subject

to

an

audit,

or

other

assurance

services.

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UNAUDITED

3/31/2015

6/30/2014

*

6/30/2013

*

CURRENT

LIABILITIES

Payables

and

Accruals

$

647,290

$

1,057,895

$

865,032

Unearned

Dues

2,192,745

1,751,980

1,867,605

Unearned

NICET

Fees

3,205,979

2,867,088

2,398,566

Legal

Fund

(restricted)

27,249

36,630

35,845

Other

262,909

112,915

Totals

6,336,172

5,826,508

5,279,963

LONG

‐

TERM

LIABILITIES

Notes

Payable

464,291

571,429

1,414,286

Accrued

Benefits

273,947

279,899

290,691

Totals

738,238

851,327

1,704,977

NET

ASSETS

5,225,875

5,098,860

4,893,055

TOTAL

LIABILITIES

&

NET

ASSETS

$

12,300,285

$

11,776,695

$

11,877,994

NATIONAL

SOCIETY

OF

PROFESSIONAL

ENGINEERS

STATEMENT

OF

FINANCIAL

POSITION

These

financial

statements

were

prepared

on

the

accrual

basis

of

accounting

by

Tate

Tryon,

CPAs,

in

conjunction

with

ongoing

outsourced

accounting

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REVENUE Membership $2,139,973 $2,281,500 $3,042,000 $3,149,601 94% Programs $683,850 $639,750 $821,000 $943,150 107% Advertising $74,183 $75,000 $100,000 $117,063 99% Job Board $108,719 $108,000 $144,000 $118,606 101% Annual Meeting $87,312 $96,000 $96,000 $82,945 91% Affinity $105,581 $93,000 $124,000 $134,761 114% EJCDC $137,371 $148,500 $198,000 $235,619 93% Education/Other $52,745 $42,000 $56,000 $62,681 126% Interest Groups $27,008 $23,250 $31,000 $82,167 116% Contributions/Other $90,932 $54,000 $72,000 $109,309 168% Operations $1,319,967 $1,394,250 $1,859,000 $1,856,755 95%

Office Lease Income $521,310 $536,250 $715,000 $660,224 97%

NICET Revenue Share $171,000 $171,000 $228,000 $247,200 100%

Administration Fees $614,871 $612,000 $816,000 $938,698 100% Investment/Other $12,787 $75,000 $100,000 $10,633 17% NICET $3,098,912 $3,537,750 $4,717,000 $4,127,022 88% TOTAL REVENUE $7,242,702 $7,853,250 $10,439,000 $10,076,528 92% EXPENSE Membership $87,930 $153,750 $205,000 $133,112 57% Programs $748,446 $825,650 $1,143,000 $1,157,663 91% PE Magazine $220,240 $261,750 $349,000 $363,966 84% Annual Meeting $144,457 $123,000 $123,000 $86,808 117% EJCDC $80,321 $67,500 $90,000 $130,666 119% Education/Other $41,808 $35,250 $47,000 $86,060 119% Licensure $56,730 $60,750 $81,000 $53,597 93% Advocacy $20,906 $39,750 $53,000 $58,225 53% Interest groups $3,743 $10,500 $14,000 $19,356 36% Outreach $76,428 $108,789 $245,000 $223,452 70% Governance $103,812 $118,361 $141,000 $135,534 88% Operations $1,343,936 $1,080,000 $1,440,000 $1,718,479 124% Finance $270,150 $39,000 $52,000 $175,948 693% Human Resources $45,765 $66,000 $88,000 $48,907 69% Technology $199,275 $150,000 $200,000 $304,216 133% Office/Mailroom $49,804 $39,000 $52,000 $69,694 128% Data Services $147,555 $146,250 $195,000 $202,972 101% Building $532,609 $535,500 $714,000 $756,541 99% Executive Office $31,642 $25,500 $34,000 $39,124 124% Office Leasing $67,137 $78,750 $105,000 $121,076 85% NICET $1,412,604 $1,875,750 $2,501,000 $1,996,903 75% SUB‐Total $3,592,916 $3,935,150 $5,289,000 $5,006,157 91% Staffing

NSPE Staff Costs $1,993,718 $2,181,000 $2,908,000 $2,844,133 91%

NICET Staff Costs $1,529,053 $1,815,000 $2,420,000 $2,020,433 84%

Sub‐Total $3,522,771 $3,996,000 $5,328,000 $4,864,566 88% TOTAL EXPENSE $7,115,687 $7,931,150 $10,617,000 $9,870,723 90%

Change in Net Assets $127,015 ($77,900) ($178,000) $205,805 ‐163%

Auditor Adjustments

NICET use of Reserves $250,000

TOTAL CHANGE IN NET ASSETS $127,015 ($77,900) $72,000 $205,805 ‐163% NSPE only Summary

Total Revenue $4,143,790 $4,315,500 $5,722,000 $5,949,506 96%

Total Expense $4,174,031 $4,240,400 $5,696,000 $5,853,387 98%

Auditor Adjustments

CHANGE IN NET ASSETS ($30,240) $75,100 $26,000 $96,119 ‐40% NICET Summary

Total Revenue $3,098,912 $3,537,750 $4,717,000 $4,127,022 88%

Total Expense $2,941,656 $3,690,750 $4,921,000 $4,017,336 80%

Reserve Funds/Auditor Adjust $0 $0 $250,000 $0

CHANGE IN NET ASSETS $157,255 ($153,000) $46,000 $109,687 ‐103% YTD Actual /

YTD Budget Actual

2014 Full Year Actual 2015 YTD 2015 Full Year

Budget Budget

Statement of Activities

National Society of Professional Engineers

For the Nine Months Ending March 31, 2015

Audited 2015 YTD

These financial statements were prepared on the accrual basis of accounting by Tate Tryon, CPAs, in conjunction with ongoing outsourced accounting services. The statements were not subject to an audit, or other assurance services.

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NSPE TREASURER’S REPORT

May 27, 2015

Alexandria, Va.

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Executive Summary

Through the nine months ending 3/31/15, NSPE and NICET are showing strong financial performance vs

budget.

The year to date bottom line shows a positive change to net assets of $126,985 versus a year to date

budget of negative ($77,900). NSPE is tracking behind plan while NICET is outperforming the budget.

Revenues are tracking at a unfavorable variance vs budget for both NSPE and NICET. The NSPE

unfavorable variance is driven by membership dues and investments.

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Executive Summary

The organization is offsetting the unfavorable variances in revenues by controlling expenses. Both

NSPE and NICET have YTD favorable variances in staffing expenses which was achieved through