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IRISFINANCIAL OVERVIEWIRIS Board of Directors Orientation
May 11, 2015
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Financial Overview Topics
• Financial Services Staff• IRIS Awards• Audits/Reviews• Financial Statements• Indirect Cost Recovery• Unrestricted Funds/Investments• Budget & Finance Committee
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Financial Services Staff
Email: <[email protected]>
Candy Shin,
CFO
Travel expense reports
Dave Fillebrown, Accounting Manager
Financial Statements, GL
Josephine Aka,
A/P ManagerChecks, ACH
Robert Austin, Purchasing Staff Acct
Purchase Orders
Dee Mann,
A/R Staff Acct
A/R, Rebills
Robin Morris, Project Cost Controller
Budgets,
Subaward/Contract Invoices
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FY15 IRIS AWARDSActive IRIS awards (7/1/14-6/30/15)
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IRIS Awards – Accounting Codes
Code Award Number PI Start End Budget
2005-xxx EAR-0733069 USArray C.A. Woodward 10/1/08 9/30/14 $76,244,193
1005-xxx EAR-1261681 SAGE C.A. Detrick 10/1/13 9/30/18 $57,873,116
1080-xxx EAR-1063471 Core C.A. Detrick 10/1/11 12/31/14 $30,569,736
1081-xxx OCE-1112722 OMO C.A. Detrick 2/1/12 1/31/17 $19,333,767
1082-xxx ICER-1343709 EarthCube Ahern 9/15/13 8/31/15 $1,783,919
1071-xxx EAR-1040292 CHILE Detrick 9/15/10 8/31/15 $1,000,000
1083-xxx PLR-1337861 GEOICE Woodward 10/1/13 9/30/16 $636,426
1078-600 PLR-1304011 GLISN 2 Detrick 9/1/13 8/31/18 $461,020
1075-700 EAR-1156739 REU Taber 6/1/12 5/31/17 $377,991
1085-400 LLNL B610206 Tajik Hafner 9/22/14 9/30/15 $146,286
1079-xxx ICER-1321600 SAVI Ahern 9/1/13 8/31/18 $138,193
1084-700 EAR-1425893 EC Workshop Taber 5/1/14 4/30/16 $73,801
1086-xxx JPL Subcontract1507934 NASA Taber 9/23/14 6/30/15 $65,000
1066-700 UNAVCO RESESS Taber 9/15/09 8/31/15 $43,857
1065-700 DUE-0942559 CCLI Taber 9/15/09 8/31/14 $32,609
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IRIS AUDITS & REVIEWSWhat do you call an accountant with an opinion?
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Audits/ReviewsOMB Circular A-133 Audit IRIS/McGladrey LLP
Desk Reviews NSF BFA - contractors
Proposal ReviewsIndirect Rate Proposal/Rate Agreement
NSF CAAR (DIAS)
Business Systems Review NSF BSR Team (LFO)
Management Review NSF Program
Program Review IRIS/NSF Program
Property Control System Review NSF Property Mgmt (DAS)
Incurred Cost and Accounting System Audit
NSF OIG – DCAA
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A-133 Audit
OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”
• Non-Federal entities that expend $500,000 or more in Federal awards in a year increased threshold to $750,000
• Audit of financial statements• Tests of internal control over the Federal program• Procedures to determine whether the auditee has complied
with laws, regulations, and provisions of grant agreements
McGladrey LLP• Tom Sneeringer, Partner• FY2001 – FY2014
OMB has consolidated its grant guidance for recipients into a single document 2 CFR Part 200.
FY14 Audit Report
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Balance SheetAssets FY14 FY13
Cash & cash equivalents $ 545,086
$ 246,035
Receivables4,873,294 4,844,367
Prepaids, advances, & other assets 285,095 315,461
Investments2,182,880 1,155,047
Leasehold improvements, net 105,278 119,616
Total assets $7,991,633
$6,680,526
Liabilities
Accounts payable & accrued expenses
$1,779,942
$1,890,228
Subawards payable3,165,691 2,119,001
Deferred rent and other liabilities 311,625291,437
Total liabilities $5,257,258
$4,300,666
Net Assets
Unrestricted $2,709,725 $2,355,410
Temporarily restricted 24,650 24,450
Net assets $2,734,375
$2,379,860
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Temporarily Restricted Net Assets• These funds have donor-imposed restrictions that can be fulfilled
by one of two ways - passage of a defined period of time (time restriction) or by performing defined activities (purpose restriction).
IRIS Example (beginning in 2009):John C. Lahr Educational Seismology FundFY09 Contributions $25,980FY10 Contributions $775FY10 Purchase 4 AS-1s <$2,605>FY11 Contributions $300FY14 Contribution $200
Balance as of 6/30/11 $24,450Balance as of 6/30/12 $24,450Balance as of 6/30/13 $24,450Balance as of 6/30/14 $24,650
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Revenues Awards/Grants
• Cost-reimbursable awards- Indirect cost recovery limitations- Management fees
• Fixed-price awards• Program Income
Membership Dues Interest/Dividends Realized/Unrealized Gain on Investments Contributions/Donations
Statements of ActivitiesRevenues
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Revenue: FY14 FY13
Federal awards$38,127,768 $32,911,215
Program income 355,880616,132
Sale of ocean cable 248,5001,066,000
Investment income 240,377130,688
Contributions 148,399
Membership dues 7,500 7,500
Total Revenue$39,128,424 $34,731,535
Innovation Fund Donations
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Month Online Contributions
Checks Amount
April 1 (test) $5.00
May 21 7 $17,955.00
June 11 13 $15,238.81
Winston Chan - commitment $100,000.00
FY14 Donations Revenue $133,198.81
Total Innovation Fund Donations as of 3/31/15 = $141,180.81
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FY14 FY13
Program services:
PASSCAL (+ Polar) $ 5,904,131
$ 3,711,749
GSN3,477,339 3,268,411
Data Services4,377,151 3,544,944
Education & Public Outreach 1,336,565
930,580
Community Activities 461,170 237,918
Instrumentation Services Mgmt
945181
495,088
Transportable/MT Arrays 4,624,349
EarthScope - USArray7,586,865 15,118,351
OBSIP Management Office6,272,765 2,589,122
Chile MRI 37,954 49,165
Chile RAPID 0 19,559
Other - Unallowable Expenses 153,857 108,778
Indirect Expenses3,596,582 3,449,122
Total Expenses $ 38,773,909
$ 33,522,787
Expenses
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17
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INDIRECT EXPENSESDC Office Overhead
DMC Office Overhead
G&A
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Office Overhead PoolsIRIS Headquarters
Washington, DC
Description FY14
Office Manager Salaries/Fringe
$ 67,203
Rent Suite 400
(11,536 sq ft)543,138
Supplies14,211
Other (equipment leases, postage, internet, telephone, water, misc.)
74,937
Total FY14 Expenses699,490
Data Management CenterSeattle, WA
Description FY14
Office Manager Salaries/Fringe
$ 89,900
Rent Suite 200 (6,409 sq ft) UWA computer space
180,387
Supplies4,975
Other (equipment leases, postage, internet, telephone, water, misc.)
28,084
Total FY14 Expenses $303,346
Office Overhead Base = $1,959,894DC Office O/H Rate = 35.69%
Office Overhead Base = $1,824,762DMC Office O/H Rate = 16.62%
General & Administrative (G&A) Pool
All other allowable general and administrative costs (costs that benefit all programs and cannot be identified to a specific program) are allocated to programs, grants, etc. using a base that consists of total costs less equipment, participant support costs and subaward costs exceeding $25,000 per subaward per year.
General & Administrative ExpensesG&A Base = _____ %
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Expense ActualFY14
ProposedFY14
ProposedFY15
Salaries/Fringe $ 1,924,438
$ 2,002,808
$ 2,159,035
Supplies33,069 25,000 25,000
Travel/Meetings166,757 207,000 182,500
Professional Services421,742 346,000 352,600
Other47,519 55,000 85,000
DC/DMC Office O/H435,960 434,029 433,845
Total $3,029,484
$3,069,837
$3,237,980
G&A (MTC) Base $12,113,849 $12,406,304 $13,039,006
G&A Rate 25.01% 25% 25%
FY
14-15 G&
A B
udgetsMax. Provisional Rates
Revised FY15 SMT G&A Budget Estimate = $3,014,417
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G&A (Indirect) Personnel• Management/Administration (100%)
– Detrick, President– Linn, Executive Assistant– Willemann, Director of Planning– Woolley, Director of Program Support– Turner, HR Generalist/Administrative– Sobel, Award & Procurement Administrator– <open> Sr. Contracts Administrator
• Business Office (100%)– Aka, Staff Accountant - A/P– Austin, Staff Accountant – Purchasing– Fillebrown, Accounting Manager– Mann, Staff Accountant – A/R– Morris, Senior Project Accountant– Shin, CFO
• Split-charged (budgeted under G&A 25-50%)– Baranowski, Meeting Planner (50%)– Dorr, Public Outreach Manager (20%)– Joseph, Web Developer (25%)
Labor FY15 Revised
Salaries $1,251,640
Fringe Benefits 700,918
Office O/H 443,806
Subtotal $2,396,364
79% of total G&A revised budget
$3,014,417
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G&A – Professional ServicesDescription/Vendor FY14 Expenses FY15 Revised
Budget% of Total G&A
Budget
Consultants (e.g., Muco) $29,496 $20,000 0.66%
HR - Insperity $207,782 $240,000 7.96%
Audit $39,300 $40,000 1.33%
Legal Services $34,379 $20,000 0.66%
Misc. (e.g., recruiting, editing, IT)
$87,280 $44,900 1.49%
Corporate Insurance (Moodys)
$23,505 $34,260 1.14%
Subtotal $421,742 $399,160 13.24%
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G&A – Travel and MeetingsDescription FY14
ExpensesFY15
Budget% of Total
G&A Budget
Staff Travel (Domestic) $60,768 $60,000 1.99%
Staff Travel (Foreign) $8,442 $10,000 0.33%
Committee Travel $42,823 $28,500 0.95%
Board of Directors (9)
CoCom (2 BoD)
Planning Committee
Instrumentation Committee
Int’l Development Seismology
Misc. Travel $24,108
Subtotal - Travel $136,141 $98,500 3.27%
Meetings $30,616 $36,000 1.19%
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Other G&A Expenses
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G&A Base
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Indirect Rate Agreement – signed 3/12/15
Indirect PoolFY11Actual
FY12Actual
FY13Actual
FY14Proposed
FY14Actual
FY15-16Proposed
DC Office O/H 28.66% 37.38% 33.90% 37% 35.69% 36%
DMC Office O/H 15.84% 18.89% 16.30% 20% 16.62% 19%
G&A 23.14% 22.04% 23.29% 25% 25.01% 25%
Indirect PoolFY11Final
FY12Final
FY13-FY15Maximum
DC Office O/H 28.66% 37.38% 37%
DMC Office O/H 15.84% 18.89% 20%
G&A 23.14% 21.89% 25%
Rates offered by NSF (3/4/15) and accepted by IRIS:
Actual and Proposed Rates Submitted by IRIS:
CAAR – FY12 Indirect Rates Allowability Determination
FY12 Disallowed ExpensesG&A Travel $ 7,316G&A Meetings $12,127------------------------------------------------Total Disallowed in FY12 $19,443
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Current Rate Agreement
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UNRESTRICTED FUNDSMorgan Stanley Portfolio
Unallowable Expenses
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Revenues Awards/Grants
• Cost-reimbursable awards- Indirect cost recovery limitations- Management fees
• Fixed-price awards• Program Income
Membership Dues Interest/Dividends Realized/Unrealized Gain on Investments Contributions/Donations
Unrestricted Funds
• PNC Bank Account balances as of 3/31/15
• Unrestricted Account $367,409• Innovation Fund Account $125,384
• Morgan Stanley Portfolio12/31/14 beginning balance = $2,174,605Portfolio balance as of 3/31/15 = $2,224,9452015 YTD Change (2% increase) = $50,340
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Morgan Stanley – IRIS Portfolio Account Balance12/31/02 – 3/31/15
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5/5/05Personal Portfolio inception $965,025
Feb/Mar 2010 Distributions<$50,000>
11/22/11Distribution<$25,000>
2/28/12Distribution<$25,000>
11/02 transfer to Morgan Stanley = $649,742
1/19/05 transfer to Morgan Stanley $107,779 (Iguaçu)
4/2/14 transfer to Morgan Stanley $802,770 (Subsea Cable)
$2,224,945
Select UMA Proposal – Portfolio Changes Implemented August 2013
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“Other” includes: investment fees, donations/gifts, staff meals, unallowable travel/meeting and promotional expenses
FY15 Unallowable Expenses -to-date7/1/14 - 3/31/15
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Budget & Finance Committee
The IRIS Budget & Finance (B&F) Committee is charged with assisting and providing recommendations to the Board of Directors on its financial management responsibilities, and serving as the liaison between the Board of Directors and IRIS staff, or external parties, on such issues.
• The Budget & Finance Committee will:• oversee the indirect pool budgets and development of the
annual indirect rate proposal,• oversee IRIS unrestricted funds and its investment portfolio,• accept and review reports provided by external auditors,• recommend the firm that will provide the next year's audit,• review the annual Form 990 (Return of Organization Exempt
from Income Tax) submission.