Post on 01-Jan-2016
DRAFT BUDGET FOR REVIEW 2
Agenda• Introduction
• Review of IOG’s Draft Budget 2013/14
– Business Line Overview
– Revenue Profile
– Overhead
– Headcount
– Supporting Schedules
• Comparison of Y/Y Quarterly Revenues
• Qtrly Statement of Financial Position
• Qtrly Statement of Operations
• Qtrly Statement of Changes in Financial Position
Introduction
• Two step process:
– Step 1: Coordination and approval of 2013/14 budget (baseline)
– Step 2: May 7 board retreat
• Broader discussion of strategic direction and plan
• Budget may be adjusted to reflect decisions
DRAFT BUDGET FOR REVIEW 3
Public Governance
• Overall story – ongoing advisory work with slight shift to a higher ratio of funded research work.
• Key Assumptions – steady demand for advisory in Ottawa, slight increase in OPS for advisory work.
• Investments – marketing time on the part of the VP and Executive Director of Public Governance Exchange (PGEx) to shift focus to proactive research projects and higher membership levels.
• No new resources required.
5
Not for Profit (NFP) Governance
• Overall story – consolidating growth of last 2 years.
• Key Assumptions – continued, steady demand for traditional services, residual work from new Canada and Ontario NFP Acts, some lift from Board/Stakeholder research project.
• Investments – completion of analysis on board/stakeholder research project and accompanying publication.
• No new resources.
6
Indigenous Governance
• Overall story – steady increase in advisory work as business line has been rebuilt; projected numbers are in keeping with historical #s.
• Key Assumptions – ongoing work from a couple of key clients, ability to build off of very successful Section 35 events, launch of research agenda (multiple partners).
• Revenue being generated by BC office.
• Investments – require 1 dedicated mid-level experienced researcher, 1 dedicated mid-level secondment.
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Modernizing
• Overall story – significant shift in mix of work, with greater in-house delivery and research intensity.
• Key Assumptions – ongoing work at City of Ottawa, select strategic advisory work driven by GoC and OPS transformations, launch of Public Governance Exchange.business transformation (PGEx.bt)
• Investments – new Senior Associate, possible hire at the Director level.
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Learning Lab – generic courses• Overall story - after a slow year, numbers in 3rd and 4th
quarters grew, although not back to 2011 levels
• Key assumptions – numbers will not grow rapidly in new fiscal; ongoing steady demand for learning fundamentals offered by these courses; stick to core courses; use of internal, senior level facilitators adds value
• Investment - work with new associate to develop & implement marketing strategy; VP Policy & Strategy to review and revise Policy 1 & 2 teach and market products; use senior internal people for other courses with minimal use of associates
• No new resources.
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Learning Lab – Boot Camps• Overall story – Functional community (HR,
communications, IT, policy, science-policy, comptrollership) leadership boot camps appear to be responding to market need
• Key assumptions – communities will support and help market products; senior level facilitators add value; there is a market for customized boot camps in departments
• Investment – develop community support; market offerings; use senior level facilitators
• No new resources
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Learning Lab – ELP• Overall story – ELP is now in its fourth cohort, with two
more planned: May (science-policy) and September
• Key assumptions – continuing room for growth; value rests on high standard of content; senior level facilitators
• Investment – high quality research and lineup, including off-site Nunavut visit; 2 senior level facilitators in classroom; marketing May and September
• No new resources
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Learning Lab - Events
• Overall story – there is an opportunity at the federal level to market embedded and customized events to departments and functional communities
• Key assumptions – contracting and budgeting restrictions that open this opportunity will remain in place; focused effort on this market required
• No new resources
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Learning Lab - Toronto
• Overall story – significant investment to date, modest expansion of OPS courses planned;
• ELP program for provincial, federal and municipal sectors in GTA being explored
• Key assumptions – marketing, planning and delivery can succeed using existing OPS networks
• Investment – a larger number of former OPS Associates supported by Ottawa team
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Revenue Profile
CDN $000’sFY 13
(est.)
FY14
Budget
Y/Y
%
Learning Centre Total $1,167 $1,626 +39%
Generic Courses1 $404 $679 +68%
Executive Learning $556 $782 +41%
Custom (Includes Events) $207 $165 -25%
Advisory & Research Total $1,967 $2,085 +6%
Aboriginal Governance $458 $678 +48%
Public Sector $584 $671 +15%
Modernizing Government $688 $479 -44%
Not for Profit Sector $237 $257 +8%
DRAFT BUDGET FOR REVIEW
1 Includes Boot and Day courses
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Business Line Overview
CDN $000’s
LL2
Budget
FY 14
A&R3
Budget
FY 14
Total
Budget
FY 14
FY13
Forecast
(est.)
Variance
%
Gross Revenue $1,626 $2,085 $3,711 $3,134 +18%
Direct Costs (includes subs) $243 $438 $681 $652 +5%
Direct Labour $643 $944 $1,587 $1,380 +15%
Gross Profit $740 $703 $1,443 $1,102 +31%
Gross Profit % 46% 34% 39% 35% +11%
Overhead Allocation1 $443 $658 $1,101 $1,134 -
Excess (Deficiency) of Revenue over Expenses $297 $45 $342 ($32) -
DRAFT BUDGET FOR REVIEW
1 Overhead Allocated based on direct Labour costs2 Learning Lab Business Line3 Advisory & Research Business Line
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Operating Expenses
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CDN $000’sFY14
Budget
FY 13
Forecast
(est.)
Y/Y
%
Salaries & Benefits $2,036 $1,889 +8%
Outreach $42 $42 -
Occupancy $388 $396 -2%
Audit/Legal $14 $9 +56%
Office $172 $142 +21%
Amortization $37 $37 -
Total $2,689 $2,515 +7%
DRAFT BUDGET FOR REVIEW
Headcount
DRAFT BUDGET FOR REVIEW
Q4 ‘13 Q1 ’14 Q2 ‘14 Q3 ‘14 Q4 ‘14
Professional Staff3 12 10 10 10 10
Sr. Research Officer 3 3 3 3 3
Research Officer 5 5 5 5 5
Administration2 5 5 5 5 5
Total FTE1 25 23 23 23 23
Sr. Associates4 5 6 6 6 6
Associates4 5 5 5 5 5
1 Does not include Summer Interns or Associates2 Includes 2 PTE’s
3 Includes CEO and VP’s4 Consultants
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Cash Position
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1H ‘14 Cash Position impacted by:•Cohort 4 and forecasted Cohort 5 prepayment•Q4 ‘13 forecasted billings•Vendor repayment plans
Risks•Forecast Accuracy•Timeliness of Billings•Working Capital assumptions
DRAFT BUDGET FOR REVIEW
Financial Assumptions• Working Capital Assumptions
• Project Billings – net 60 days
• Learning Centre – 30% prepaid/70% up to 90 days
• Accounts Payable – 45 – 60 days of expenses
• Capital Additions $60k
• Labour Costs
– COLA 3% (52K)
– Bonus Accrual $80k (plan forthcoming)
DRAFT BUDGET FOR REVIEW 21
Financial Assumptions (cont’d)
• Facilities located in:
– Ottawa
– Toronto
– Vancouver
• No accounting for Work in Process
DRAFT BUDGET FOR REVIEW 22