MAINE HUMANITIES COUNCIL Maine Humanities Council 1 Financial Overview Presented by: Don Gaudet...

MAINE HUMANITIES COUNCIL

Maine Humanities Council Maine Humanities Council 11

Financial Overview

Presented by: Don Gaudet

RUNYON KERSTEEN OUELLETTE

Recently, Maine Humanities Council completed the financial audit process. We are pleased to report that the Council received an unqualified “clean” opinion. Simply, this means that Maine Humanities Council’s financial statements are fairly presented in all material respects. Congratulations on this accomplishment.

The remainder of this publication is dedicated to providing you with the results of the audit. We hope you find this information useful and understandable.

Finally, we wish to express our appreciation to Erik, Mary and all the other members of the Council’s staff who were so helpful to us during the audit process.

INSIDE

1. Assets

2. Liabilities and Net

Assets

3-4. Revenues

5-6. Expenses

7. Ratio Analysis and

Closing Remarks

SUMMARY OF SIGNIFICANT CHANGES • Decrease in cash of $163,000 is due to the timing of cash

receipts and disbursements close to year end as well as a shift out of cash and into investments.

• Investments increased by $494,000 due to better market returns and fewer unrestricted funds being transferred over to cash.

• Of the $245,000 increase in receivables, $200,000 pertained to a contribution to the Dorothy Schwartz Opportunity Fund from the River Rock Foundation.

• Decrease in property and equipment of around $14,000 is

caused by another year’s worth of depreciation expense.

• Prepaid expenses and deposits remained flat with the prior year.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2006 98,666 2,130,077 409,320 376,612 22,954

2005 261,528 1,636,479 164,080 390,791 22,006

Cash Investments ReceivablesProperty &

equip.Prepaids/ deposits

FINANCIAL STATEMENT PRESENTATIONOctober 31, 2006

ASSETS

KEY PERFORMANCE INDICATORS



SUMMARY OF SIGNIFICANT CHANGES

• The changes in both regrants payable and accounts payable are both due to the timing of the payment of invoices close to year end.• Increase in accrued expenses of $2,700 is due to more days needing to be accrued of the final pay period of the year.

• The net increase in deferred revenue of $122,000 is driven by the following:

- State regrants $163,000

- State tech. fund ($21,000)

- LTAI ($29,500)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2006 20,800 66,550 12,542 352,595

2005 14,580 68,199 9,800 230,470

Regrants payable

Accounts payable

Accrued expenses

Deferred revenue

LIABILITIES

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2006 1,105,342 376,612 484,325 618,863

2005 993,722 390,791 227,443 539,879

UndesignatedNet Investment in

P,P & ETemporarily restricted

Permanently restricted

NET ASSETSSUMMARY OF SIGNIFICANT CHANGES

Net investment in PP&E decreased by $14,000 due to another year’s worth of depreciation.

• Temporarily restricted net assets represent funds that have been restricted by outside donors for a specified purpose or the passage of time. Most of the increase is due to nearly $267,000 of contributions to the Dorothy Schwartz Opportunity Fund.

• Permanently restricted net assets increased by $79,000 due to the earnings on the respective investment accounts.

• Undesignated net assets represents what’s left over after backing out the other classifications.



REVENUES

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2006 872,606 532,229 710,590 129,624 39,682 601,996 4,112

2005 646,189 439,649 427,969 66,926 53,080 276,692 11,198

NEH grants Other grantsContribution

& gifts

Net investment

income

Program income

In-kind Other income


• National Endowment for the Humanities (NEH) grants increased by $226,000 due to additional base grant funding.• Other grants increased by a net of $92,500 due to a second Teaching American History Grant totaling $111,500 and fewer State Technology Funds being used of around ($19,000).• Of the $282,000 net increase in contributions & gifts, $267,000 came from donations to the Dorothy Schwartz Opportunity Fund. • Net investment income increased by $63,000 due to a higher investment base and stronger market conditions.• Program income decreased by $13,400 due to fewer programs and one less conference being offered in the current year.• Increased in-kind revenue is driven by the following:

– Lit. & Med. $205,000– Thoughtful Giving $102,000– Let’s Talk About It $ 24,000– New Books New Readers $ 8,800



REVENUES, CONTINUEDREVENUES, CONTINUED

Other1%

NEH 30%

Other grants18%Contributions & gifts

25%

In-kind21%

Program income

1%

Investment income

4%

2006

NEH33%

Other grants23%

Contributions & gifts22%

In-kind14%

Program income

3%Investment income

4%

Other1%

2005



EXPENSES BY NATURAL CATEGORYEXPENSES BY NATURAL CATEGORY


• Personnel increased by $58,832 due to higher overall salaries and related payroll benefits.• Higher consultants is driven Hawthorne & Longfellow, which increased by $86,000 in 2006, and TAH #1 and #2, which together had a net decrease of ($5,200). • Increased in-kind expenses corresponds to the higher in-kind revenues mentioned earlier.• Reserve for uncollectible accounts of $50,000 pertains to management’s conservative effort to account for any market risk that may result in a drop from the original $250,000 pledge.• Increase in travel of around $47,000 can be broken down as follows:

– Lit. & Med. Seminar $13,500– Hawthorne & Longfellow $11,700– TAH #1 $ 7,000– TAH #2 $ 9,400– Other $ 8,800

• The major components behind the increase in other expenses is broken down as follows:– Supplies $ 21,300– Printing & Publications $ 28,100– Postage $ 5,250 – Repairs & Maintenance ($ 14,200)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2006 666,912 400,281 601,996 50,000 117,439 620,904

2005 608,080 313,859 276,693 0 69,985 579,530

P ersonnel Consultants In-kindReserve for Uncollectible

AccountsTravel All Other



EXPENSES BY FUNCTIONEXPENSES BY FUNCTION

Fundraising5%

Administration7%

Marketing4%

Community History, Regrants & Tech.

Assistance9%

Center for the Book

75%

2006

2005

Fundraising3% Administration

10%

Marketing5%

Community History, Regrants & Tech.

Assistance8%

Center for the Book

74%



FINAL WORDS

This presentation is intended as a tool to assist the Board of Directors and management of Maine Humanities Council in

understanding its financial operating results.The information contained in this publication should be read in

conjunction with the audited financial statements andrelated disclosures and should not be used for any other

purposes without the expressed consent ofRUNYON KERSTEEN OUELLETTE

Please contact us at 207-773-2986 or 1-800-486-178420 Long Creek Drive, South Portland, ME 04106

FINAL WORDS

This presentation is intended as a tool to assist the Board of Directors and management of Maine Humanities Council in

understanding its financial operating results.The information contained in this publication should be read in

conjunction with the audited financial statements andrelated disclosures and should not be used for any other

purposes without the expressed consent ofRUNYON KERSTEEN OUELLETTE

Please contact us at 207-773-2986 or 1-800-486-178420 Long Creek Drive, South Portland, ME 04106

RATIO ANALYSISRATIO ANALYSIS

Key Standard 2006 2005

Current Ratio A 1.3 to 1 1.17 to 1 1.35 to 1Days Expenses in Undesignated Net Assets B 30-45 164 196Administrative Expenses as % of Total Expenses C <25.0% 16% 18%Administrative Expenses as % of Total Revenues D <25.0% 13% 17%

A [Cash, Receivables, Prepaids, Unconditional Promise to Give]/[Payables, Accruals, Due to State]B Undesignated Net Assets/[total expenses/365 days]C (Administration & Marketing)/Total ExpensesD (Administration & Marketing)/Total Revenues

Key

MAINE HUMANITIES COUNCIL Maine Humanities Council 1 Financial Overview Presented by: Don Gaudet...

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