american youth soccer organization

Transcription

AMERICAN YOUTH SOCCER
ORGANIZATION
AYSO Annual Budget
Fiscal Year 2014
July 1, 2014 to June 30, 2015
To:
From:
Date:
SUBJECT:
All Executive Members
Jeff Stern, AYSO National Treasurer
May 1, 2014
Budget for Fiscal Year 2014
Dear Executive Members:
We present the proposed budget for the 2014/2015 fiscal year beginning next July 1 that will
allow AYSO to continue to Provide world class youth soccer programs that enrich
children’s lives.
This budget maintains the current player fee of $17.50. As we are doing in fiscal 2013, we will
continue to dedicate $1.25 of the fee in fiscal 2014 to our Safe Haven Program and enhanced
background checks that will allow us to maintain the highest standards in youth sports.
The budget reflects the further drop in our player count, along with a sharp increase in our
insurance costs. On the positive side, please note that the budget no longer contains a
provision for payments for the US Soccer Foundation loan. We made the final payment on the
loan in April and this will be a benefit to our future cash flow.
This year we will not present a budget review workshop at the NAGM, but rather will schedule
several webinars prior to that. Please keep an eye out for information on those. In any case, if
you have questions or concerns about the budget, please don’t hesitate to contact me at
[email protected] or your Chief Financial Officer, Steve Meisberger, at [email protected].
Respectfully,
Jeff Stern
Jeff Stern
AYSO National Treasurer
AMERICAN YOUTH SOCCER ORGANIZATION
FY 2014 BUDGET
Key 2014/2015 Budget Highlights:
Revenue is divided into three categories: (1) registration revenue, (2) operating revenue,
and (3) program revenue (excess of costs). Expenses are also grouped into three
categories: (1) program costs (excess of funding), (2) membership development, and (3)
administration.
As with last year’s budget, we have included a budgeted balance sheet and cash flow
statement. Also, a five year forecast is provided to highlight anticipated revenues,
expenses and cash flows over the next five years.
The following comments are based on comparisons between the 2014 budget and the
2013 forecasted results.
Revenue
- 0% increase in registration revenue due to flat player registrations over FY ’13.
- 9.0% increase in sponsorship revenue due to new sponsors and planned
renewals.
- Ongoing positive performance in AYSO Soccer Camps program revenue
due to continued strong player count combined with renewal of the Coach and
Player Development Program.
- 11.9% increase in Supply Center net program revenue on the strength of
AYSO Publication sales growth and fewer registration kits produced due to eSign.
Expenditures
- Overall Direct Player Costs are 3.8% higher than FY ’12 due to increases in
our direct insurance costs. Direct Player Costs are an expense category that
report costs for USSF player fees at $1 per player, and insurance premiums
directly related to player registration for soccer accident insurance (“SAI”) at
$1.41 per player, general liability insurance at $0.63 per player, and umbrella
liability insurance at $0.31 per player.
- Special Programs & Member Services, Player Development and
Management all reflect costs for National Office programs related to the game
including officiating and membership services, Curriculum and Instruction, National
Games, VIP, RC and AD training.
- Events department contains funds to develop, promote, and manage AYSO Expos,
the National Annual General Meeting, and all other National Office based training
meetings and events.
- The Safe Haven department reflects costs for our Safe Haven program that helps
protect AYSO kids and volunteers.
- Significant improvements continue with the Volunteer Screening process in FY
’14 with $1.25 of the $17.50 total player fee again being dedicated to enhanced
background checking procedures.
Ref: 2014 NAGM Budget-v4.1.docx
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FY 2014 BUDGET
Key 2014/2015 Budget Highlights (continued):
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Costs for our annual Expos and the National Annual General Meeting are all
captured within the Meetings category. Overall meeting costs are slightly lower
than last year due to lower NAGM venue costs combined with a restructuring
of Expo compensated travel for Area and Section staff.
The Membership and Development category includes costs for Section and
Area Operations as well as funding for the Membership Development
Department. Overall budgeted costs for Section and Area Operations are
47.9% lower than FY ’13.
Overall Administration costs are 2.8% lower than 2013 and include
compensation costs for the National Executive Director, the Chief Financial
Officer, and all front office support staff. Additionally, this expense category
includes support costs for the National Board of Directors, and all legal expenses.
There are 5 full time employees in this department.
The Sales & Marketing category combines the Marketing, Advertising Brand
Management, Sales, Sponsor Services, Communication, Advertising and Production
(digital and design) areas. There are 8 full time employees within these areas.
They are responsible for all new sponsorship and partnership programs and
managing existing relationships. They also develop all AYSO advertising,
publications and communications, including AYSO.org, PLAYSOCCER magazine,
the Parents Pocketguide to AYSO magazine, three weekly newsletters (The
Commish, Whistle Stop and Hey Coach) and five monthly newsletters (90 Second
Soccer parent, Dollars & Sense, Safe Haven, The Registrar Resource, More Soccer
for More Kids) and public relations program. In addition, the department also
creates new sponsorship programs and manages existing relationships.
The Operations expense category is broad and includes 17 full time
employees, or 33% of total National Office headcount, spread over several
departments: Finance & Registration, Information Technology, Facilities,
and Human Resources support costs.
Depreciation and Amortization costs are lower in 2014 due primarily to
previously capitalized software costs becoming fully depreciated, and the planned
delay in FY 2014 for making new capital expenditures.
Other (Income) Expense is the combination of interest earned on investments
plus all interest expense. Also included in this category are sponsor in-kind
expense offsets to in-kind sponsor revenue reported within the operating revenue
portion of this budget.
The US Soccer Foundation debt was fully retired in FY 2013.
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FY 2014 BUDGET
Budget Presentation by Goals and Objectives:
Per Section 9.12 of the AYSO National Bylaws, the National Board of Directors
shall annually present to the Executive Members at the National Annual General
Meeting a set of goals and objectives for the American Youth Soccer Organization.
The proposed budget for each fiscal year, which shall also be presented annually to the
Executive Members, shall be predicated and based upon the stated goals and objectives.
The schedules below and on the following page sets forth our goals and objectives for
fiscal 2014.
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Organizational Goals
Focus on Strategic Plan goals, objectives and key results.
Increase the number of players in the organization.
Increase the number of volunteers in the organization.
Ensure National Office staffing meets organization needs.
Develop a business plan to build diversity within organization leadership.
Continue to support conservative spending while focusing on membership
service needs.
Build up cash reserves to a target equal to 6 months operating expenses.
Develop a “Go Green” business plan to include a full, organization-wide
implementation of eSign.
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FY 2014 BUDGET
Budget Presentation by Goals and Objectives: (continued)
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Specific Goals
Simplify regional processes and other demands on volunteer time.
Support and assist Regions on local needs, such as more efficient management of
Regions, field development, building community support and brand awareness of
AYSO, including outreach to Regions via periodic teleconference/webinars to all
Executive Members.
Continue to fund marketing and development plans with focus on identifying
new markets and other growth opportunities.
Continue to develop and implement Executive Member and key volunteer
training.
Continued support of phased in mandatory coach training including increased
number of local training opportunities and online training.
Develop a plan to increase volunteer support in Regions.
Create an information technology strategic plan, specifically including the design
and roll-out plan for the next version of eAYSO (e3).
Continue with a task force to translate training materials and create more
bilingual toolbox items.
Revamp the NAGM and continue to support improvements to the AYSO Expos
to better meet the membership’s needs.
Implement a plan wherein all players and volunteers will register using eSign,
thus ensuring the most expeditious screening of volunteers, data integrity and
protection in processing and retention of registration forms for all players and
volunteers.
Expansion and delivery of successful Pre-soccer, Jamboree and U-6 programs.
Develop and deliver a new tier of player programming aimed at AYSO players
seeking a more elite or “select” player program.
Support improved customer service, including embedding customer service
training in all volunteer curricula, improving all courses and developing a more
relevant volunteer recruitment process.
Improved instructor training.
Page 6 of 49
FY 2014 BUDGET
The National Office Player Fee:
Where does it all go?
The chart above describes the components of the National Player Fee.
Page 7 of 49
FY 2014 BUDGET
National Office Revenues
The following chart sets forth the sources of National Office net revenues, principally
from National Office player registration fees and corporate sponsorships.
Note that all revenue from AYSO Soccer Camps and the Supply Center is reported
here as program revenue in excess of program costs, or “net” program revenue.
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Page 8 of 49
FY 2014 BUDGET
National Office Expenses
The following chart sets forth the allocations of National Office expenses by
department for the fiscal year 2014/2015. Some programs are partially “self-funding”,
such as AYSO Expos, and National Coaching Courses, and therefore the costs
presented below are the “net” program costs in excess of funding.
Page 9 of 49
FY 2014 BUDGET
Total Organization Expenses
To illustrate the relationship between National Office expenses and the total
expenses from all Sections, Areas and Regions required to run the entire
organization, the following chart depicts actual results from the most recently
available tax return. Consolidated expenses for all Sections, Areas and Regions for
the fiscal year ended June 30, 2013 equaled 86.3% of all costs required to operate
AYSO.
Note: The most recent total company figures
available are from FY 2012 tax return, and used to
illustrate the ongoing relationship between
National Office and total company expenses
Page 10 of 49
FY 2014 BUDGET
National Office Compensation
The following graph depicts the relationship between FY 2012 actual compensation
dollars for the 51 National Office staff compared with total National Office
revenue. Total compensation costs of $3,846,201 represented 38% of total National
Office revenue.
38%
But the work performed by the National Office staff supports the entire consolidated
AYSO organization – including all Sections, Areas and Regions, 491,000
players, and over 125,000 volunteers -- so a more accurate representation of the
relationship between staff compensation dollars and total revenue is 6%.
6%
Note: The most recent total company figures
available are from FY 2012 tax return, and used to
illustrate the ongoing relationship between
compensation and National Office vs. total
company revenue.
Page 11 of 49
FY 2014 BUDGET
What is the real per-player cost to operate
AYSO?
From the schedule above you will note that player registration fees represent the largest
single source of total gross National Office revenue (79.9%). We work hard to
minimize reliance upon a single revenue source by raising funds from other sources
wherever possible. For FY 2014, budgeted gross revenue from all other programs and
activities will reach only $2,161,843, or $4.40 per-player. Largely coming from
national sponsorships and AYSO Soccer Camps, revenue from all other sources
represents dollars we do not need to collect in the form of player fees.
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FY 2014 BUDGET
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FY 2014 BUDGET
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FY 2014 BUDGET
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FY 2014 BUDGET
Explanation of Key Financial Statement Line Items
I.
REGISTRATION REVENUE AND DIRECT PLAYER COSTS
Player Registration Fees
$8,592,000
$17.50 Per Player
We have budgeted for a flat or zero player increase over the fiscal year 2013 forecast of
491,000 players, resulting in a 2014 budgeted player count of 491,000.
We are proposing no change in the national player registration fee of $17.50.
The chart above describes the player registration counts and national player fee
amounts for the budget year 2014 and the previous sixteen years.
Page 16 of 49
FY 2014 BUDGET
Player Registration
491,000
$17.50 Per Player
It is the normal pattern of our business to register a significant number of players for
the subsequent fiscal year before the current fiscal ends. By June 30, 2014, we expect
to have already registered 228,315 players for FY ’14. Then, budgeted player counts by
month for the remainder of FY ’14 will total 262,685, bringing the total budgeted player
count for FY ’14 to 491,000.
See the following schedule for details:
Page 17 of 49
FY 2014 BUDGET
Direct Player Costs
$1,898,725
$3.87 Per Player
Direct player costs include a $1 per player fee for membership to the United
States Soccer Federation, (“USSF”), and direct insurance costs. Direct insurance
costs include soccer accident insurance (“SAI”), and general and umbrella
liability insurance premiums.
AYSO’s insurance policies cover all registered players, coaches, referees, and other
volunteers for injuries that happen while participating in any approved AYSO activity.
The injury must be directly related to the primary activity of soccer and occur within
the scope of duties related to AYSO’s operation, including uninterrupted travel to and
from scheduled games, practices, tournaments or events.
Note that AYSO’s SAI policy is designed as a secondary coverage plan. This means
covered participants should seek reimbursement from their primary health insurance
provider if they have one, and then apply or submit a claim to the SAI program for
coverage.
The limits of coverage are:
Medical expenses limit
Dental expenses limit
Physical therapy & Chiropractic limit
Accidental death & dismemberment
Orthopedic appliance benefit
Benefit period
Deductible
$50,000
$10,000
$100/day up to 10 days
$15,000
$10,000
52 weeks
$500
AYSO’s insurance program is reviewed annually to make sure we receive the maximum
benefits for our premium dollars. Our insurance advisory firm is Willis, a global
insurance broker providing specialized risk management, advisory and other services to
a broad range of corporate and institutional clients. Willis is the third largest insurance
intermediary in the United States, is publicly traded on the New York Stock Exchange
(NYSE:WSH), and has over 20,500 employees and 210 offices throughout the United
States.
The name of our SAI carrier and SAI claims processor is the American
International Group (AIG), of NY. AIG is rated A (Excellent) XV ($2 billion or
greater in assets) by A. M. Best Company, Inc. A.M. Best is the industry standard
financial strength rating service for insurance companies. Our liability carrier is
Philadelphia Insurance Companies of Bala Cynwyd, PA. Philadelphia is rated A+
(Superior) XIV ($1.5 billion to $2 billion in assets) by A.M. Best.
Page 18 of 49
FY 2014 BUDGET
Direct Player Costs (continued)
$1,898,725
$3.87 Per Player
The following chart summarizes AYSO’s 2014 budgeted direct player costs:
Direct insurance costs are significant --- they comprise 14% of total National Office
budgeted expenses. Claim reserves and / or payments against our General Liability
policy continue to rise. That fact along with a significantly heightened awareness of
potential concussion liability has created additional pressure on all carriers to raise
premiums. In fact many carriers have either eliminated concussion coverage completely
or if not, they have added strong risk management qualifications to be eligible for
concussion coverage.
A number of claims, some significant, have unfortunately been filed against our general
liability policy. Some of these claims while not yet paid have nevertheless been assigned
large reserve amounts by our liability carrier. Reserve amounts are dollar estimates by
the carrier which they believe will eventually be paid in settlement of outstanding legal
actions.
Page 19 of 49
FY 2014 BUDGET
With a keen eye on rising claims and higher reserves combined with heightened
concussion awareness, we conducted a broad and aggressive request for proposal
project throughout this year’s program renewal. Our 2014 Umbrella and General
Liability policies will renew at $115,040 and $566,825 respectively. This represents a
premium increase of $212,768 or +45.4% over current actual liability insurance costs.
To help contain rising costs while continuing to provide the best soccer accident
insurance (SAI) coverage for our membership, FY 2014 will be the first year with new
carrier American International Group (AIG). The program has been restructured
and now includes a $500 deductible along with the larger and more sophisticated
claims processing capacity of AIG. Together these actions have lowered our SAI
premium by $25,140 or 3.4% over current year SAI costs.
Page 20 of 49
FY 2014 BUDGET
OPERATING REVENUE
Sponsorship Revenue
$954,171
$1.94 Per Player
Net sponsorship revenue is budgeted at $954,171 or 9.0% higher than FY ‘13. This
includes only sponsors that have signed contracts or where there is an extremely
high likelihood of contract renewal as the budget closes. The increase is due to
existing sponsors we expect to renew plus the addition of Nesquik and Dole. All
projections are based on conservative estimates.
Sponsorship Service Costs include general funds to help provide better service to
our sponsors and increase retention. Some of these services are contractual
obligations of the sponsor deal.
As with last year’s budget, we have included the “in-kind” value of goods due to
AYSO under sponsor contracts. The chart above depicts FY ’14 sponsorship
revenue.
Page 21 of 49
FY 2014 BUDGET
II. PROGRAM REVENUE (EXCESS OF COSTS)
AYSO Soccer Camps
$255,350
$0.52 Per Player
AYSO Soccer Camps is a program started in 2005 that represents the financial
results of the agreement between AYSO and UK International Soccer Camps.
Under this license agreement, AYSO Soccer Camps will promote and operate youth
soccer camps, including day camps and residency camps, throughout the United States.
All camps are staffed with instructors who have successfully completed personal
background checks required by AYSO and who have received training in all AYSO
instructional methods and techniques. Only camp materials, curriculum, and
instructional procedures that follow AYSO guidelines will be used.
AYSO earns a fifteen percent (15%) licensing fee from gross camp receipts, of
which one-third (5%) will be returned to local host regions.
Overall operating expenses will be flat to FY ’13 amounts. Continuing on from last year
is the paid coach trainer program. Identified separately in the Coach & Player
Development line item, this program revenue represents AYSO’s share of all paid
coach training contracts engaged in by our UK International Soccer Camp partner
with individual AYSO Regions. Net program revenue will increase by $8,388 or
+3.4% over FY ’13.
The chart above represents the FY 2014 budget assumptions for AYSO Soccer Camps.
Page 22 of 49
FY 2014 BUDGET
AYSO Supply Center
$300,052
$0.61 Per Player
AYSO Supply Center net program revenue is the result of $908,406 in sales less
$608,354 in expenses including cost of goods sold. Net program revenue for FY 2014
is +11.8% higher than the 2013 forecast due to a combination of price increases and
higher unit sales on coaching manuals. Our relationship continues with document
management vendor Ricoh, who provides updated photocopying equipment throughout
the National Office and additionally our web based e-commerce solution that
enables all AYSO digital products to be ordered by AYSO authorized purchasers
on-line through a link found on www.ayso.org.
Supply Center net program revenue helps offset registration kit production costs.
Historically, basic AYSO registration kits were provided to each region annually at no
additional charge, even though the cost to print and ship these kits resulted in a loss.
On January 1, 2014 it became mandatory for all volunteers to register via eSignature
using eAYSO. This year, beginning August 1, 2014, all players must register via
eSignature using eAYSO. There will be no charge for this service. This deadline is
January 1, 2015 for regions using a third party registration system instead of eAYSO
to register their players.
For regions needing additional time to comply with this mandate, a one year extension
until January 1, 2016 may be granted upon request. For security reasons, AYSO’s
eSignature program is currently only available in conjunction with eAYSO and not
with any other third party registration system. However, as of this budget
publication date we are working directly only with current third party registration
vendors on an alternative solution that will meet both AYSO’s eSignature standards and
allow regions currently using third party registration vendors to continue using them for
the foreseeable future.
Recognizing there will be situations where wet signatures on paper player registration
forms temporarily remain the only solution, we are developing the technology and
procedures to receive, intelligently scan and digitally store paper forms. All paper
player registration forms taken on or after August 1, 2014, must be sent to the
National Office at the end of the season.
Page 23 of 49
FY 2014 BUDGET
AYSO Supply Center (continued)
$300,052
$0.61 Per Player
There are two full time employees in the Supply Center. The chart below portrays
the details of the 2014 Supply Center budget.
Page 24 of 49
FY 2014 BUDGET
NAASA
$38,960
$0.08 Per Player
Since 2000, the AYSO Adult League has provided the opportunity for AYSO
“graduates”, parents of players and other fans of the game to play the “AYSO Way”
while being registered with the only recognized adult affiliate of US Soccer – the
United States Adult Soccer Association. Players from 18 to 72 years of age have
benefited from this program.
As part of the ongoing efforts by AYSO’s National Board of Directors to implement the
strategic plan, the AYSO Adult League was established in FY 2010 as a standalone
California corporation, the North American Adult Soccer Association, or
(“NAASA”) with AYSO as its sole corporate member.
At the end of FY 2011, it was determined that for business efficiency reasons it would
be best to dissolve the NAASA corporate entity and return NAASA to a prominent
role within the umbrella of AYSO as the NAASA Division. Beginning with FY 2013, all
NAASA financial and operational activities were assimilated under the AYSO
corporate umbrella.
The chart above portrays the details of the 2014 NAASA division budget.
Page 25 of 49
FY 2014 BUDGET
III. PROGRAM COSTS (EXCESS OF FUNDING)
Special Programs & Member
Services
$329,321
$0.67 Per Player
The Special Programs & Member Services Department is a group of cost
centers supporting the development, administration and delivery of training and
certification programs for instructors and support services for our Executive Members.
This department also supports the Very Import Player (VIP) program. Compensation
costs for all employees in this group fall under the Member Services cost center. There
are four full time employees in this department.
The assistance provided by Member Services includes maintenance of member and
regional records, exchange of important communications to key volunteers, revision and
distribution of the executive member directory and oversight of legal and dispute issues
brought to the National Office for resolution.
Overall, the 2014 Special Programs & Member Services Department budget reflects an
increase of $32,211 from the 2013 forecasted amount. This is primarily due to the
full year budgeted costs for the curriculum specialist FTE which was unfilled for a
portion of FY 2013.
The chart below reflects the 2014 budget details for each component of the Special
Programs and Member Services Department.
Page 26 of 49
FY 2014 BUDGET
Player Development
$362,410
$0.74 Per Player
The Player Development department supports all activities and initiatives that relate to
the training and development of our players. This includes the activity of the AYSO
Coaching Program, the National Coaching Course, the National Tournament
Advisory Commission (“NTAC”), and the National Coaching Advisory
Commission (“NCAC”).
Also included in the Player Development Department are funds to support the
development, administration and delivery of training and certification programs for
referees, and the National Referee Advisory Commission (“NRAC”).
There are no funds budgeted this year for face to face meetings of the NCAC,
NTAC or NMAC. There are three full time employees in this department.
Overall, the 2014 Player Development Department budget reflects a decrease over
the 2013 forecast of $22,351. This is due to the combination of factors including the
transfer of the Officiating program to this cost center in mid FY 2013 plus the
elimination of the Coach Instructor Evaluation Course in FY 2014.
The schedule below describes the 2014 budget for the Coaching Department.
Page 27 of 49
FY 2014 BUDGET
Management
$270,361
$0.55 Per Player
The Management department is a group of cost centers supporting the development,
administration and delivery of training and certification programs for administrators and
members of Region, Area and Section staff. There are two full time employees in
this department. All compensation costs fall under the Management cost center. This
budget also includes support for the National Management Advisory Commission
(“NMAC”).
In the fall of 2014, and again in the spring of 2015, the National Management Program
Administrator, with assistance from several volunteer Management Instructors, will
conduct training for new Area Directors. Area Director Training is held at the
AYSO National Office where AD candidates have an opportunity to share issues and
ideas and to become familiar with the services of the National Office.
This budget includes funds for four RC Training events in FY ’14. Three classes
will be held at the National Office in Torrance, CA and instructed from a pool of
National Office Staff, NMAC members and other qualified volunteer instructors. These
classes will serve up to 35 attendees each and include additional funding for subsidized
travel costs up to a maximum of $40,000. A fourth RC Training event will be held
at a TBD offsite location and as with the onsite events, will be instructed from a pool
of National Office Staff, NMAC members and qualified volunteer instructors.
Overall, the 2014 Management Department budget reflects an increase of $20,597
from the 2013 forecasted target of $249,764. This is due to several factors
including the addition of a second Area Director Training event in the spring of
2015.
The chart below describes the 2014 Management Department budget.
Page 28 of 49
FY 2014 BUDGET
Events
$277,569
$0.57 Per Player
The Events department includes all support costs for the National Office staff to
develop, promote and manage AYSO Expos and the National Annual General
Meeting. This includes actual compensation costs for four full time employees.
Events staff also helps coordinate and handle all necessary logistical arrangements for
on-site meetings at the National Office including the National Board of Directors
meetings, Regional Commissioner and Area Director training events.
Overall, the 2014 Events Department budget is $51,373 lower than the 2013
forecast target of $328,942. This is due to a change in staffing strategy and restructure
following the departure of the Events Manager in FY 2013.
The chart below reflects the 2014 budget details for the Events department.
Safe Haven
$352,612
$0.72 Per Player
There are four full time employees in the Safe Haven department, including the
Director of Human Resources and Safe Haven. Safe Haven’s educational and risk
management programs, along with those of our volunteer CVPA’s and Safety Directors
in the field, play a key role in AYSO’s comprehensive risk management program.
Overall, the 2014 Safe Haven budget is flat to the 2013 forecasted target of $345,825.
The chart below reflects 2014 budget details for the Safe Haven Department.
Page 29 of 49
FY 2014 BUDGET
Meetings
$605,309
$1.23 Per Player
The Meetings expense category includes budget funds for AYSO Expos and the
National Annual General Meeting, (“NAGM”).
Eleven Expos have been scheduled from January through June 2015. A total of
3,651 volunteers are budgeted to attend of which 2,952 are paid attendees, 130 are
subsidized for registration only and the remaining 569 participants are fully or
partially subsidized from National Office budget funds.
A total of 468 persons are budgeted to attend the NAGM this year each to vote on
the annual budget, proposed amendments to the National Rules and Regulations and
Bylaws and to elect our National Board Members and National President. Of this total
144 attendees are fully subsidized from National Office budget funds.
There is a $32,665 overall decrease in meetings expenditures over FY ’13, due to a
combination of lower NAGM costs due to favorable venue costs, and also the
reduction of fully subsidized positions for the AYSO Expos. Only National
Office staff actually required to conduct each Expo event are now scheduled to attend.
This resulted in the reduction of Supply Center, MIS, Finance and Development Staff as
fully subsidized attendees. Also reduced significantly this year were Area and
Section Staff subsidies and various Commission member subsidies.
The chart above depicts the budgeted costs for the consolidated Meetings budget for FY
’14.
Page 30 of 49
FY 2014 BUDGET
PLAYSOCCER
$284,760
$0.58 Per Player
This budget includes the direct costs for printing and mailing two issues of
PLAYSOCCER: August 2014 and April 2015. Each mailing will be distributed to
400,000 households. Each issue will also be produced and distributed in a digital
format.
Ad sales for PLAYSOCCER have historically been difficult to obtain as they are for many
association magazines, and therefore we have conservatively excluded these in FY ’13.
However we seek paid advertising in categories that are not exclusive to a sponsoring
company, in addition to working with current sponsors to expand their placement at a
surcharge. FY ’14 budgeted costs are $41,730 higher than FY ‘13 due to expected
postage rate and production cost increases.
The chart below reflects FY 2014 details for the various budget components of
PLAYSOCCER:
Page 31 of 49
FY 2014 BUDGET
Volunteer Screening
$613,750
$1.25 Per Player
At the rate of $1.25 per player, the FY ’14 budget includes $613,750 in funds
specifically dedicated to the goal of keeping AYSO at the forefront on volunteer
background screening and player health and safety – our children deserve no less than a
safe, fair and fun environment in which to play.
Administered by the AYSO Safe Haven Department, these additional funds are used
to provide more comprehensive screening options from the best available national
background check vendors. With the expansion of the eSignature program, we are able
to provide even more timely screening and secure retention of data.
The projected average cost for more comprehensive screenings ranges from $4.50
to $5.00 per check. The brunt of these costs should not be borne only by the
adults who choose to volunteer. It is more equitable to spread these costs over all
registered players.
To promote transparency and integrity, all volunteer screening funds collected are
physically segregated from operating accounts by moving them to a separate bank
account restricted for only this purpose.
The chart below depicts the FY ’14 Volunteer Screening budget:
Page 32 of 49
FY 2014 BUDGET
IV. MEMBERSHIP AND DEVELOPMENT
Membership Development
$223,317
$0.45 Per Player
Membership Development
The Membership Development department continues to identify AYSO growth
opportunities, including large new partner relationships such as the National
Recreation and Park Association and Boys and Girls Clubs of America. Staffed
with a Manager of Development reporting to the Chief Marketing Officer, and a
Marketing Analyst position added in FY ‘13, we are internally focused on retaining
existing players and volunteers and developing new Regions.
The FY ’14 budget is $63,347 higher than the FY ’13 forecast target due primarily
to the incoming transfer of the Marketing Analyst position from the Marketing
Department. There are no funds budgeted for a marketing Commission face-to-face
meeting this year.
The chart below provides the details for the FY ’14 Membership Development budget:
Page 33 of 49
FY 2014 BUDGET
Section & Area Operations
$100,000
$0.20 Per Player
This budget includes funds for general operating costs for Section and Area operations.
These costs include travel, communication and other operating costs for the
purpose of facilitating all normal operations including improving
communications, growing player and volunteer membership, and controlling
fraud.
This year in an effort to control costs and focus limited resources on those areas
of the organization needing the most help, the National Board of Directors instructed
staff to take a different approach. Instead of creating individual budgets for each Section,
this year all Section & Area operating funds will be concentrated within a single
budget pool.
A procedure to access and distribute these funds is under development for approval by
the Board.
The schedule above describes the 2014 Section and Area Operations budget by Section.
Page 34 of 49
FY 2014 BUDGET
V. GENERAL AND ADMINISTRATION EXPENSES
Administration
$864,926
$1.76 Per Player
The Administration Department includes compensation costs for five full time
employees, including AYSO’s National Executive Director and Chief Financial
Officer. Additional support costs are included for travel, supplies and legal expenses to
cover all legal costs, retainers and marketing and licensing agreements.
The Board of Directors budget provides funds to support 17 NBOD meetings per
year:
- 3 traditional meetings at the AYSO National Office in July and October 2014 and
again in March 2015
- 12 monthly meetings via teleconference and webinar
- 2 meetings during the May 2015 NAGM in Phoenix, AZ
Additional funds have been provided to address other issues including:
- The provision of travel funds to ensure adequate AYSO representation at the USSF
Annual Meeting
- The support and administrative costs for the National President including
telephone, mail and supplies
- General support for all other NBOD travel expenses and costs
Overall FY ’14 Administration costs are slightly lower than last year by $24,412.
The following chart describes the 2014 Administration budget:
Page 35 of 49
FY 2014 BUDGET
Sales & Marketing
$707,143
$1.44 Per Player
This portion of the budget provides funding for national advertising, brand management,
internal and external communications, development and content for AYSO.org,
acquisition of sponsors and licensees, research, media projects, public relations, event
videos and materials, graphic design, sponsor services, marketing tools that support
AYSO Region growth, fundraising and grant writing resources for the Hugo Bustamente
AYSO Playership Fund and research that support the national budget and special
programs.
There are eight full time employees in this department. Marketing expenses are
$111,232 lower than the FY ’13 forecast target due to the transfer of a marketing
analyst position to the Development Department combined with lower budgeted
consulting costs. There will be no face to face meeting of the Marketing
Commission this year.
The Sales & Marketing Department budget supports sponsorship sales
development, support materials (sponsor and media kits), printing, postage for sponsor
solicitations and mailing, staff travel, video and collateral material development for
AYSO events and programs, subscriptions to trade and professional journals,
professional membership fees and sponsor program development. The Sales &
Marketing Department also handles all marketing and communications for the national
organization, producing and editing multiple publications including PLAYSOCCER,
Whistle Stop, Hey Coach, Dollars & $ense, the Commish, Safe Haven, 90 Second
Soccer Parent, Registrar Resource, and The Parent’s Pocket Guide to AYSO.
Within the Sales & Marketing Department employees are also engaged in digital design
and production activities including scheduling, production, design, layout and proof
oversight of all AYSO manuals, publications, collateral, advertising and AYSO.org, the
organization’s national Web site, AYSOTraining.org, the national training website and
microsites for AYSO Expo, NAGM, National Games and 50th Anniversary.
The chart above portrays the Sales & Marketing Department budget details for FY 2014.
Page 36 of 49
FY 2014 BUDGET
Operations
$2,589,975
$5.27 Per Player
The Operations Department is a group of cost centers dedicated to the support and
daily operation of AYSO including: Finance, Registration, Information
Technology, Facilities, Mail & Printing, and Human Resource support
services.
Budgeted Operations department expenses are lower than FY ‘13 forecasted
amounts by $73,257 primarily due to the transfer of a full time clerical position from
Facilities to the Supply Center.
The Finance department handles all accounting, financial and registration functions of
the National Office, including preparation of the budget, investments, insurance, risk
management, tax filings and maintenance of AYSO’s nonprofit status. The 13 full-time
employees of the Finance & Registration staff oversee the administration of over 3,300
local bank accounts and produce and distribute more than 2,800 financial reports each
month. This includes the processing of player and volunteer registration forms
submitted to the National Office for data entry and the preparation of registration
kits, mailing labels, member I.D. cards and verification of tournament rosters. Finance
staff also administers the NAP Online program as well as all sales tax compliance
activities.
Information Technology includes development, maintenance, customer support,
repair and upgrades for all National Office software systems, including our flagship
online membership management system eAYSO as well as the Great Plains financial
system. There are 4 full time employees including the Manager of Information
Systems, one Support Technician, one Help Desk Supervisor, and one Help
Desk Support Coordinator. Also included in the information technology budget are
costs to host and maintain the www.ayso.org website, maintain and operate the AYSO
data co-location center in Salt Lake City, provide primary and back-up
telecommunication capacity, and cover annual software maintenance fees for
third party applications such as Great Plains, and various other Microsoft products.
Page 37 of 49
FY 2014 BUDGET
Operations (continued)
2,589,975
$5.27 Per Player
The chart below provides the details for the 2014 Operations budget.
Maintenance of the National Office building, landlord relations, telephone and alarm
systems is the responsibility of the Facilities Department. The lease for AYSO’s
18,941 square foot National Office facility in Torrance, CA was executed on
February 4, 2011. The lease is a 120 month, full service gross deal with an
approximate total value of $3.75 million dollars. The initial rent was approximately $18
per square foot and increases 3% per year. There are 24 months of half-rent
holidays, effectively giving us one full year of free rent over the life of the lease.
Most normal operating expenses such as utilities, janitorial and insurance costs are
included in base rent but can increase up to 3% per year over an initial baseline
year expense calculation. Although our cash rent costs will contractually
escalate over time, we straight-line these costs in accordance with Statement of
Financial Accounting Standards No. 13: Accounting for leases.
Also included in this expense category are insurance premiums for all indirect
policies including, auto, crime, property & casualty, D&O, cyber and fiduciary liability.
We expect premiums for these lines of coverage to decrease by $3,988 or -6.9%
over 2013 amounts. Other major costs are National Office occupancy costs,
equipment repairs, maintenance and telephone, internet and data line costs.
Costs for the one full time employee in the Facilities Department have been
transferred to the Supply Center in FY 2014.
The Human Resources budget includes support costs for the Human Resources
Director and various training and development costs.(Note: Budgeted compensation
costs for the Human Resources Director are included within the Safe Haven
Department budget.)
Unallocated copy paper, supplies and postage are budgeted in the Mail & Printing
department. All other copy paper, supplies and postage costs are allocated to the
originating department.
Page 38 of 49
FY 2014 BUDGET
Depreciation
$484,278
$0.99 Per Player
Depreciation expense has decreased from last year by $23,220 due to the
completion of the deprecation cycle for a number of individual software and
equipment assets, and the planned delay in purchasing certain capital expenditures to
later in fiscal year 2014.
The chart below describes FY ‘14 depreciation and amortization expense:
Capital Expenditures
$514,000
$1.05 Per Player
Capital expenditures for FY ’14 are higher than FY ’13 by $144,000 and will again
include funds for user requested eAYSO enhancements as prioritized by the National
System and Software Commission (NSSC).
Included with the FY ’14 capital expenditure budget are funds to upgrade the Great
Plains financial system, add additional user requested enhancements eAYSO, and to
make an investment in a significant upgrade to eAYSO.
The schedule below describes FY ’14 capital expenditures by asset category:
Page 39 of 49
FY 2014 BUDGET
Cash Reserve
$150,000
$0.31 Per Player
A cash reserve line item has been added to this year’s budget to raise cash in
accordance with our strategic goals and objectives. We believe it is important to
build a cash reserve fund sufficient to cover at least one-half of the total expenses
required to operate the AYSO National Office for a full year. Also, we believe it is
important to establish funds available for a building purchase at the end of our current
ten year National Office facility lease.
All Cash reserve funds will be placed into physically separate investment accounts
apart from normal operating funds and will be assigned voluntarily restricted status.
This means NBOD approval will be required to use these funds once invested.
Page 40 of 49
FY 2014 BUDGET
VI. WAGES, TAXES AND BENEFITS
Compensation
$3,993,033
$8.13 Per Player
The schedule below describes total National Office compensation costs and headcount
distribution by department.
No new full time equivalent (FTE) positions have been added to the FY ’14
budget. Total National Office headcount remains at 51.0 employees.
We have budgeted for a 15% increase in employer health and dental insurance
costs, as well as vision, life and AD&D insurance. We expect no increase in our
California workers compensation premium. AYSO matching funds to employee
403(b) plan contributions remain at 50% and material healthcare plan design changes
will be made as necessary to minimize total healthcare costs.
A 2.0% merit salary increase assumption was used for all staff below the
Director level, and for all Managers below a certain salary threshold. This
means that while funds may be available for pay increases, only those employees
earning a merit increase will be eligible. Eligibility and amount of increase per
employee will be determined during the annual performance review process as
administered by the Director of Human Resources and Safe Haven.
Page 41 of 49
FY 2014 BUDGET
VII. DEFERRED PLAYER REGISTRATION FEES
It is the normal pattern of our business to register a significant number of players for
the subsequent fiscal year before the current fiscal year ends. By June 30, 2015, we
expect to have registered 230,598 players for the next fiscal year (FY ’15) which will
begin July 1, 2015 as per the following schedule:
Since our revenue recognition policy is to defer revenue on players registered for future
fiscal years, we are budgeting deferred player registration fees of $4,035,467 at
June 30, 2015. This deferred revenue amount, calculated at the expected national
player fee for FY ’15 of $17.50, along with related accounts receivable appears on
our budgeted balance sheet at June 30, 2015. Cash receipts on collection of
receivables arising from deferred revenue each spring is a significant part of AYSO’s
business cycle.
Page 42 of 49
FY 2014 BUDGET
VIII. NOTE PAYABLE TO US SOCCER FOUNDATION
In April of 2001 AYSO secured an interest only loan of $1,500,000 from the US Soccer
Foundation to help pay a judgment arising from a dispute with a former AYSO sponsor.
To begin the process of permanently retiring our debt to the Foundation, we completed
a successful renegotiation of this loan in fiscal 2007. The first part of the deal required
us to reduce the outstanding principle by $300,000 in two $150,000 installments which
we have completed. Thereafter, the new loan terms called for fixed monthly
payments over seven years commencing August 15, 2007 at an annual interest rate
of 7.2%. Monthly payments at this rate are $17,726.
During FY ’13 we paid $230,337 to service this debt, of which $9,289 was for
interest expense and $221,048 was for principal reduction.
On April 16, 2014 we paid off this debt by making one final accelerated
payment of $69,858. This debt has been retired.
The schedule below sets forth the final details by year of this loan.
Page 43 of 49
FY 2014 BUDGET
IX. PROFESSIONAL FEES
In the normal course of business, AYSO departments incur professional fees of
various types in the execution of National Office daily operations. Temporary Labor
is used primarily by the Supply Center at peak sales periods to ensure the timely
shipping of product. Audit & Tax costs are incurred each year for our outside
independent audit along with preparation of Federal and State tax returns. Consulting
costs are significant and the reasons for them vary by department. Consulting budgets
for some departments are placeholders for planned projects that have not yet
occurred, while other consulting budget funds are the required by contractual
obligations for existing projects. Legal fees are for outside counsel to assist with
contract review and negotiations, as well as to advise and represent AYSO in various
litigation matters that are common to any business. The chart below summarizes total
professional fees from all National Office departments throughout the FY ‘14
budget.
Consulting
Within the Coaching department, we have set aside $151,272 for three outside
coaching professionals to help create the content and deliver our National Coaching
program. In the Development department, $82,000 has been budgeted for Section
Resource Specialists in support of the AYSO strategic plan growth initiative.
As part of a contractual arrangement with eAYSO development firm KRG, $160,008 in
consulting costs provide one full time onsite programmer plus 24/7 technical
support for National Office Information Technology department staff. The balance
of the IT consulting budget provides one full time offshore programmer, various
other network and telecommunication support services both at the National
Office in Torrance, CA and our colocation data center in Salt Lake City, and additional
resources to staff the eAYSO Call Center during peak registration periods.
Page 44 of 49
FY 2014 BUDGET
X. CONTINGENCY
Should we fail to meet our budgeted player registration numbers, or suffer a revenue
loss for any other reason, we have prepared the following contingency plan that
outlines some specific action items we would explore under three different
scenarios of unfavorable player count or general revenue deficiencies.
Note these action items only represent suggested courses of action that would be
thoughtfully considered by the National Board of Directors in the event of a revenue
shortfall.
Page 45 of 49
FY 2014 BUDGET
XI. 5 YEAR FORECAST
The following schedules are presented to provide a look at the forecasted financial
results of the organization over the next five years. A primary goal in this five year
forecast is the enhancement of financial stability through the rebuilding of our cash
reserves. Our targeted cash reserve balance is one-half year of expenses, or
approximately $4,500,000.
Note these forward looking results are only projections based upon assumptions
derived from the best information we have available at this time. Factors unknown
today or other factors beyond our control could cause actual results over the next
five years to be significantly different.
This projection was prepared using the following global assumptions:
Revenue
- $1.25 per player increase in FY ’16
- 0.5% per year player growth beginning FY ’15
- A conservative turn around approach to the recent short term sponsor revenue
decline as existing deals expire, followed by replacements in FY ’15
- 1% growth in AYSO Soccer Camp registrations
- Flat growth in Supply Center Net Program Revenue
Direct Player Costs
- Anticipated 3% per year increases in General Liability and Umbrella
premiums due to current known lawsuits and existing carrier reserves against
those cases; plus continued general market risk sensitivities due to heightened
concussion liability awareness
- Expected 3% per year increases in SAI premiums beginning in FY ‘15
- Assumption of no increase in the USSF $1 per player membership fee
Page 46 of 49
FY 2014 BUDGET
Expenditures
- No National Office staff headcount additions over FY ’14 levels
- 2% per year merit pay increases
- 5% per year increases in AYSO Expo costs; 2% per year in NAGM costs
- PLAYSOCCER increases of 2% per year
- Section & Area Operations budgets remain flat to FY ’14.
- Aside from merit pay increase mentioned above, the general assumption for all
National Office department costs is flat to FY ‘14
Cash Flow
- Between $200,000 and $300,000 per year in annual capital expenditures
(“CAPEX”)
- Assumption of an additional $1.0 million in CAPEX over 3 years for a replacement
or upgrade to eAYSO beginning in FY ’14 with expected in service dates beginning
in mid FY ‘15
- US Soccer Foundation loan was fully retired in April 2014
- Begin Cash Reserve funding in FY ’14 with $150,000; variable amounts per year
thereafter
The schedules on the following two pages depict AYSO’s forecasted Activities and
Changes in Net Assets and Forecasted Cash Flows for each of the five fiscal years
ending June 30, 2015 (FY ’14) through June 30, 2019 (FY ’18).
Page 47 of 49
FY 2014 BUDGET
Page 48 of 49
FY 2014 BUDGET
Page 49 of 49

american youth soccer organization

Transcription

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