February 6, 2019 Staff Meeting

Post date: Jan 10, 2019 2:53:21 PM

-Welcome, Gabby! New equipment scheduler 

-Annual meeting for membership is March 20th, 2019

-CRI finances and how CRI operates

• • Important that everyone be on the same page about financials

  • Net Income Reconciliation breakdown

    • Revenue = programs, grants, annual fund

    • Three areas that hadn’t been accounted for before that affect revenue:

      • Financial aid, discounts (middle school, employee, etc.), indirect aid (running programs that we don’t charge for – inclusion) – these indirect programs have value – CRI needs to recognize this

      • Last year CRI awarded over $1,000,000 in direct or indirect aid

    • Does this revenue model work CRI?  Is it sustainable?  Does this fit CRI’s mission?  All questions that need to be answered

    • What should be done about ‘good programs/bad programs’, ‘on mission off mission’?

    • Expenses = direct expenses  uniforms, food, etc. – anywhere between 25-40%

    • Contribution to overhead (CTO):

      • Allocated expenses (gasoline, light, taxes, admin overhead, facilities): approx. $1.5 million

      • Then we are left with operating income: but there are other expenses we need to address that get drawn down on that (rainy day fund), depreciation on a $17million building, etc. – these are capital expenses: $335k for CRI per year

      • Then we get net margin

    • In order to gain insight - we added all the hours of rowing at together – 310k hours – then divided by the people who row them (comp youth pays for their percentage) – everybody should own their service to the mission

    • Hourly allocation is not perfect but it’s the method that gets us closest to understanding CRI operations

• • 2018 Finances

    • Program revenue: $4.8 million

    • Direct expenses: $3.5 million

    • CTO: $1.2 million

    • Allocated expenses: $1.5 million

    • Operating income: ($264k)

      • Before adding in $335k

    • Net margin: ($599k)

    • Overall: ($866,000) 

  • Options: cutting or investing  CRI is going to use the investment approach

  • The goal is not to eliminate – how are we going to make this shift while serving the mission? Playing the long game

  • How to change: strategic partnerships, program revenue (logbook sculling), private boat owner price increase, more corporate rowing/price increase, new director of development – fix the experiences of rowing here, working here, and giving here simultaneously 

  • The plan is to raise revenue but there are still expenses that need to be controlled: re-negotiate contracts, Row Studio, admin, financial aid

  • What’s ahead in 2019 : address operating revenue, program revenue, fundraising revenue, program expense, admin expense

-Coach Certification Update – Beatrice

• • Better tracking for CPR, safesport, etc.

  • Reminder emails will start going out for certifications that are about to expire

  • Potential for program leaders to get a rundown on where their staff stands on certifications – schedule time for certification

-YETI = 860 students signed up already – polar water sponsor, gentle giant transportation, volunteer opportunities available for people who are interested, Eddy and Kara will be assigning staff to certain roles within the next week or so