crossref financial review
DESCRIPTION
Linda Beebe's presentation at the 2009 CrossRef Annual MeetingTRANSCRIPT
Financial Review
Linda Beebe, Treasurer
Thursday, November 12, 2009
Financial Achievements
• Business model: balanced and sustainable
• Generating a surplus for re-investment
• No debt: all start-up loans repaid May 2007
• Clean 2008 audit - Audit Committee working well
• Policies and procedures have grown with the organization
Thursday, November 12, 2009
Financial Achievements
• Major investment in System Rewrite
• Membership & Fees Committee undertook complete fee review
• Book deposit fees revised
• Affiliate and CrossRef Metadata Services fees revised
Thursday, November 12, 2009
Financial Goals
• Sustain and invest in core services – capital expenses for operations.
• Invest in new services.
Thursday, November 12, 2009
Financial Goals
• Retain a minimum of 2 months operating cash plus next year’s capital spending on hand at all times.
• Maintain a credit line of $250,000 to support current operations.
• Establish a cash reserve fund ($.5 million) for future improvements to the core services.
Thursday, November 12, 2009
Revenues: Key Components $2,993,000 - 2009 YTD
Membership (27%)Deposits (61%)Hos6ng, Metadata, Other (12%)
Thursday, November 12, 2009
Revenues: Key Components $2,993,000 - 2009 YTD
Membership (27%)Deposits (61%)Hos6ng, Metadata, Other (12%)
$808,000
$1,837,000
$348,000
Thursday, November 12, 2009
Expenses: Key Components$2,555,000 – 2009 YTD
Staffing (51%)Administra6on (25%)Data/SoBware (15%)Travel/Mee6ngs (6%)New Ini6a6ves / Other (3%)
Thursday, November 12, 2009
Expenses: Key Components$2,555,000 – 2009 YTD
Staffing (51%)Administra6on (25%)Data/SoBware (15%)Travel/Mee6ngs (6%)New Ini6a6ves / Other (3%)
$1,305,000
$632,000
$382,000
$158,000 $78,000
Thursday, November 12, 2009
9-Month 2009 Highlights
• Revenue: $2,993,000
• $177,000 (6%) over Budget
• $322,000 (12%) over same period 2008
• Expenses: $2,555,000
• $55,000 (2%) under Budget
• $121,000 (5%) over from same period 2008
Thursday, November 12, 2009
Financial Overview2000-2009 LE
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
2,071
2,918 2,8683,245
422
1,176
3,1403,452
3,655
4,058
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
2,071
2,918 2,8683,245
422
1,176
-786
-1,881
-2,722-2,624
-2,391
-1,641-1,499
3,1403,452
-3,250
3,655
-3,325
4,058
-3,495
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
2,071
2,918 2,8683,245
422
1,176
-786
-1,881
-2,722
91
-220
254
-45
-501
-99
-2,624
-2,391
-1,641-1,499
3,140
-3612
3,452
-3,250
3,655
-3,325
-85
4,058
-3,495
-17
Thursday, November 12, 2009
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
3,500
3,000
2,500 2,000 1,500
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
Income Statements – By Year
Financial Overview2000-2009 LE
$000's
2,071
2,918 2,8683,245
422
1,176
-786
-1,881
-2,722
91
-220
254
-45
536478
-400 -501
-99
-2,624
-2,391
-1,641-1,499
-422
521257
770
3,140
-3612
3,452
-3,250
214
3,655
-3,325
-85
245
4,058
-3,495
546
-17
Thursday, November 12, 2009
Financial Overview2000-2009 LE
Thursday, November 12, 2009
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
Member Loans & Cash at Year-End
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
$000's
Financial Overview2000-2009 LE
Thursday, November 12, 2009
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
Member Loans & Cash at Year-End
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
$000's
Financial Overview2000-2009 LE
Thursday, November 12, 2009
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
Member Loans & Cash at Year-End
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
$000's
2,000
1,400
600
1,950
1,700
1,125
1,200
0 0 0
Financial Overview2000-2009 LE
Thursday, November 12, 2009
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
Member Loans & Cash at Year-End
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LE
$000's 1,241
2,000
1,400
600
819
1,198
1,950
1,700
935
1,125
454 389
1,200
1,486
1,136
0
1,299
0 0
1,626
Financial Overview2000-2009 LE
Thursday, November 12, 2009
Cash$2,034,000 - 9/30/09
Reserved (25%)Opera6ng (75%)
Thursday, November 12, 2009
Cash$2,034,000 - 9/30/09
Reserved (25%)Opera6ng (75%)
$1,534,000
$500,000
Thursday, November 12, 2009
Safe Cash Investments
• Cash spread across 8 financial institutions
• Spare cash in money market accounts and Certificates of Deposits (CDs) in the US and a Treasury bond in the UK
• CD maturity dates are laddered
• No stocks or Subprime mortgages
Thursday, November 12, 2009
2010 Draft Budget
• Revenue - $4,315,000 (6% growth over 2009LE)
• Membership growth leveling off/most new members in lowest tier
• Expenses - $3,827 (9% growth over 2009LE)
• Investments in metadata quality and System Rewrite
• Two new staff positions – tech support and part-time bookkeeper
• Cash balances remain within Board cash policy
Thursday, November 12, 2009
Strategic Issues
• Ensure long term viability of CrossRef through prudent policies and long term planning
• Define broad principles for investment in start up initiatives (i.e., innovations)
• Regularly monitor all fees and adjust as necessary
Thursday, November 12, 2009
Strategic Issues - Risks
• Decline of Backfile deposits and leveling off of growth of Current deposits
• Impact of general economic downturn
• Costs going up due to growth in members, metadata quality efforts and new services
• Not completing System Rewrite in a timely manner
Thursday, November 12, 2009
Strategic Issues - Risks
• Collection on member & affiliate billings has become much more difficult and time consuming
• More invoices go over 90 days past due
Thursday, November 12, 2009
Summary
• Excellent financial performance
• Major investment in System Rewrite including IP ownership
• Risks being addressed
• CrossRef can expand and remain a viable non-profit for industry innovations.
Thursday, November 12, 2009