Craig Mintz, CFOCornelia Kent, Controller

Finance Overview & Risk ManagementNew Professionals Orientation

August 2012

• Craig Mintz – CFO• Cornelia Kent– Controller• Janet Lazic – Accounting Manager• Christine Tran – Manager Program Finance & Ops• Dermaine Isaacs– Staff Accountant (MidAtlantic

and SE Regions)• Lynda McGee- Staff Accountant ( West, NE and

Midwest Regions)• Veronica Head- Accounts Payable Associate

BBYO Finance Department – August 2012BBYO Finance Department – August 2012

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System Wide FYE 2011 – 2013FYE 2011 FYE 2012 FYE 2013

Actual Forecast Budget REVENUE

Restricted 5,140,341 3,250,000 3,316,000Unrestricted 4,645,431 6,075,000 6,875,000Member Dues 668,626 675,000 650,000Program Fees 10,539,849 11,100,000 11,360,000Federations 472,820 485,000 435,000Other Income 581,720 475,000 443,000Total Revenue $ 22,048,787 $ 22,060,000 $ 23,079,000

EXPENSEDirect Program Expense 9,287,082 9,425,000 9,580,000Operations 3,750,117 4,500,000 4,290,000PDI - Non Staff Costs 1,207,510 935,000 621,000Personnel 7,035,556 7,150,000 8,560,000Total Expense $ 21,280,265 $ 22,010,000 $ 23,051,000 Net Income / (Loss) $ 768,522 $ 50,000 $ 28,000

Program Net $ 1,252,767 1,675,000 1,780,000Program Net % 12% 15% 16%

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Regions FYE 2011 – 2013FYE 2011 FYE 2012 FYE 2013

Actual Forecast Budget REVENUE

National Allocation 1,029,129 909,618 837,118Unrestricted 1,552,660 1,650,000 2,050,000Program Fees 3,798,849 3,829,770 3,467,203Federations 440,792 485,200 462,500Other Income 382,412 98,357 52,500Total Revenue $ 7,203,842 $ 6,972,945 $ 6,869,321

EXPENSEDirect Program Expense 3,628,537 3,533,060 3,061,703Operations 652,233 660,425 690,916Personnel - Regional Staff 2,815,340 2,789,149 3,011,786Total Expense $ 7,096,110 $ 6,982,634 $ 6,764,405 Net Income / (Loss) $ 107,732 $ (9,689) $ 104,916

Program Net $ $170,312 $296,710 $405,500Program ROS % 4% 8% 12%

Regional Finance Credit Card Process Deposits

Finance Overview: Finance Overview: Policies and ProceduresPolicies and Procedures

Staff Accountant• Reconcile Bank Operating & Investment

Accounts – (Please forward any statements you receive to Finance)

• Process Deposits• Assist with Program Budgets & Analysis• Assist with Regional Financial Statements• Assist with processing of BOA Visa cards

expenses

Regional Finance ResponsibilitiesRegional Finance Responsibilities

Expense Payment options1. Check Request – Preferred Method2. Bank of America Credit Card3. Expense Report

Regional Deposits

Regional Expenses/Deposits:Regional Expenses/Deposits:3 Methods of Payment3 Methods of Payment

• Checks are cut three times a month based on predefined monthly schedule

• A completed & approved check request should be emailed to the Accounts Payable email address by specified date in schedule

• “Completed & Approved” means:• Check Request Form• Form W-9, if a new vendor• Account Coding• Invoice/Supporting Documentation• The required support for mileage reimbursement is a

route printout from MapQuest or similar website• Approval from DFO/AED

Regional Accounts Payable Check RequestRegional Accounts Payable Check Request

• Obtaining one: • DFO/AED sends request to CFO • Employee Reads & Signs Authorization Form• No purchases of Capital Assets (computer,

printer, copier, software, office furniture)• All charges over $500 require pre-approval by

DFO/AED• Card will be sent to field staff via FedEx

• Card Limit - $2,500

Bank of America Credit CardBank of America Credit Card

Your Responsibilities• Submit completed on-line reconciliation to DFO/AED monthly• DFO/AED submits all reconciliations to HQ by the 15th

• Items all reconciliations require for complete submission1. PDF Statement from VISA on-line system with coded expenditures2. Copies of ALL receipts3. Approval of ALL charges from appropriate supervisor• Regional Expenses – DFO/AED• Hub Expense – Chief Field Officer (Aaron Katler)• International Program Expense – Program Supervisor• Failure to submit a complete reconciliation on time can result in

the suspension of your credit card and disciplinary action

Bank of America Credit CardBank of America Credit Card

• NEVER MAIL CASH• Deposit cash & checks at local Bank of America branch

in a timely manner• Complete a deposit slip, make a copy, and provide copy

to Staff Accountant • Create a detailed list of the payments that comprise

each deposit and provide to Staff Accountant, including:• Amount of payment • Who the payment is from• What the payment is for• What is appropriate account coding

Regional DepositsRegional Deposits

Questions?Questions?

Finance Overview: Finance Overview: Risk Management Risk Management

• Simply speaking, a risk is any uncertainty about a future event that threatens your organization's ability to accomplish its mission.

• Risk threatens an organization’s assets.

What is Risk?What is Risk?

• People• Board members, volunteers, employees, donors & the

general public• Property

• Buildings, facilities, equipment, materials, copyrights, websites

• Income• Donations, grants, endowments, program revenue

• Goodwill • Reputation, brand, stature in the community, ability to

raise funds & attract employees

Nonprofit Assets Fall into the Nonprofit Assets Fall into the Following Categories:Following Categories:

• Background checks on all advisors & staff• Development & consistent use of employment

practices• Fundraising guidelines & best practices• Addressing program/event hazards• Guidelines for partnership agreements• Protecting your data

Risk Management at BBYORisk Management at BBYO

• Staff & advisor training via webinars on : • Teens and Social Networking• Cyber Bullying• “Sexting”• Mandatory Reporter Basics

Risk Management at BBYORisk Management at BBYO

• Insurance• A valuable risk tool• Insurance is NOT synonymous with risk

management• Cannot insure all of BBYO’s assets• Only 1 insurance company will write our policy for

athletic programs/event coverage• List of excluded programs is not negotiable

Risk Management at BBYORisk Management at BBYO

• Risk management needs to be part of your daily routine

• When in doubt…..ask!• DFO/AED• Craig

Key TakeawaysKey Takeaways