Financials

Introduction

 

            The Great Salt Lake Council desires to be transparent to its volunteers, members and donors and have posted our 2016 Audited Consolidated Financial Statements and 2017 budget here on our website.  Along with those documents a short explanation is provided for certain significant transactions.

 

            The Year ending December 31, 2016 was a strong financial year for the Council with a net increase in net assets (surplus) in the unrestricted portion of the Operating Fund of $41,382.  Net unrestricted operating income for the year was $309,897, which was $12,766 above the budgeted net operating income of $297,131.  Transfers out of the operating fund of $268,515 to liquidate intercompany borrowing result in the net increase of $41,382.   Revenues came in $302,287 under budget due to a shortfall in Friends of Scouting donations of $318,732.  Most other revenues categories came in fairly close to budgeted levels.  Expenses came in under budget by just $315,053, with all of that savings coming in the employee compensation area of $367,186.

 

            The Capital Fund had fixed assets additions of $6,353,123.  The new additions included primarily the Thomas S. Monson Lodge and surrounding landscaping for $6,228,320 dedicated on October 3, 2016 and new shower and bathrooms facility at Teton High Adventure Base. 

 

            The Endowment Fund had an increase in donations totaling $87,914 which is another good year on top of 2015 where donations were around $115,000.

 

            The Operating Fund had a increase in net assets from all classes of net assets of $347,352 due to an increase in Friends of Scouting collections for 2017 in 2016 of $305,970.  The Capital Fund had an increase overall in net assets with a big increase in unrestricted net assets of $9,012,314 due to three main drivers.  The finishing of the Thomas S. Monson Lodge and surrounding improvements of $6,228,320, the sale of Millcreek land to the Trust for Public Lands for a gain on sale of $2,782,901 and the in-kind donation of a note receivable for a $1,000,000 for the Thomas S. Monson lodge.  The Endowment net assets went up $109,696.  Made up of donations and unrealized gains of $50,687.  The liabilities of the Council went up due to a new Summit County Facility Bond 2016 for $2,500,000 use to pay off the old bond to lower the interest rate from 4.91% to 2.90% and to obtain funds to finish the Thomas S. Monson Lodge.  Liabilities were also increase due to a sale/leaseback arrangement that simultaneously increased the value of the land the Council Service Center has by $1,590,000 and liabilities for the same amount.

 

            If there are further questions about these documents you are welcome to contact Brian P. Sheets, CPA, CGMA (the Council’s Chief Financial Officer) at brian.sheets@scouting.org.

Audited Consolidated Financial Statements

 

Great Salt Lake Council Audited Consolidated Financial Statement Explanations

 

To assist you in better understanding the Audited Consolidated Financial Statements for the Great Salt Lake Council, BSA for the year ending December 31, 2016 the following major points of explanation are made below.

 

1.         Boy Scout Financial Policy requires all Councils to report in a three fund format.  The funds are:

a.General Operating Fund, which includes all normal day to day operations of the Council for the year.

b.Capital Fund, which includes all of the fixed assets for the Council based on their Capitalization Policy.  It also includes the Capital Campaign income and expenses and any construction in progress for fixed assets the Council is going to keep.

c.Endowment Fund, which holds funds that are to be invested, made up of unrestricted, temporarily restricted and permanently restricted funds with the interest, dividends and gains used to support the Boy Scout programs in the Operating Fund and capital repair and maintenance.

 

2.         The Audited Consolidated Financial Statements are made up of 6 basic sections.  The operations of the Council are consolidated with the operations of Teton Whitewater, LC a for–profit subsidiary.  Those 6 sections are:

a.Independent Auditors Report page 1 & 2, which gives the Great Salt Lake Council, BSA an unqualified opinion and was a clean audit, which means the Council Consolidated Financial Statements for the year ending December 31, 2015, presents fairly, in all material respects, the financial position of the Council.  The Audit Committee of the Council approved the audit by Mayer, Hoffman & McCann, PC at their meeting on May 8, 2017.

b.Consolidated Statement of Financial Position, page 3, which reflects all of the Assets, Liabilities and Net Assets (i.e. equity or retained earnings) for all three funds for the year ending December 31, 2016.

c.Consolidated Statement of Changes in Net Assets, pages 4-5, which show the income and expenses for all three funds broken out by the type of restrictions placed on the revenue i.e. unrestricted, temporarily restricted and permanently restricted.

d.Consolidated Statement of Cash Flows, page 6, shows the changes in cash for all three funds broken into three major sections of Cash Flows from Operations, Cash Flows from Investing Activities and Cash Flows from Financing Activities.

e.Consolidated Statement of Functional Expenses, page 7 reflects the functional expenses of Program Services, Management and General and Fund Raising broken down to their natural classifications.

f.Notes to Consolidated Financial Statements, page 8-34, which represents 20 notes giving further details on various aspects of the Consolidated Audited Financial Statements.

g.Additional Information, page35-37 presents program expenses for the year categorized by the major programs they are associated with.

 

December 31, 2017 Budget

 

Budgeting Process

 

            The budgeting process for a year begins in the spring of 2016 and usually concludes in November of that year when the Board of Directors approves the upcoming year’s operating budget.  The Budget was approved by the Board at their meeting on November 9, 2016.

 

 

  1. Volunteers and Professionals together prepare initial budgets in the Summer
  2. Those are reviewed by their Supervisors, the Accounting Department and put into the accounting system.
  3. The Budget is then compiled and reviewed by the Cabinet, made up of the Scout Executive, Director of Support Services, Director of Development, Director of Field Services and the Chief Financial Officer. 
  4. Changes recommended and approved by the Cabinet are implemented into the budget and the paperwork is prepared to present the budget to the Budget Committee.
  5. The Budget Committee meets and reviews the budget and further changes are usually recommended and, once made, the budget is approved by them.
  6. The Budget is presented to the Officers for approval and once they approve it, usually during the first part of November and the full Board approves it later that month.
  7. The Budget is monitored throughout the year by staff, Officers and Board.