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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
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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.
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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
SUMMARY OF SIGNIFICANT CHANGES
• 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
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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
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EXPENSES BY NATURAL CATEGORYEXPENSES BY NATURAL CATEGORY
SUMMARY OF SIGNIFICANT CHANGES
• 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
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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%
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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
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