Financial Report December 31, 2014
Financial Report December 31, 2014
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Executive Summary! •
FFS reported net operating income of $15K for the twelve months ended December 31, 2014, which is $25K below Plan. (pages 4-5)The major components of this variance are management fees below Plan ($135K), Professional/Contract Services expense above plan ($38K) and asset management fee income below Plan ($30K), offset by Advertising expense below Plan ($59K), Compensation expense below Plan ($47K), Travel expense below Plan ($17K), Convention expense below plan ($14K), Telephone expense below plan ($13K), Cable and internet expense below Plan ($12K), and Graphic Services expense below Plan ($10K). (page 7).!
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Page 6 shows the Statement of Activities by department for the twelve months ended December 31, 2014. For 2014, FFS operated slightly above breakeven including the $250K subsidy from the Foundation to support Planned Giving. This support ($96K net of expenses) and the income upstreamed from FFSLF ($151K) cover the cost of field services, customer support and admin which are the only costs not covered by management fees from ICFG or the Foursquare Foundation. !
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In order for FFS to generate sustainable profits in the long term to help cover Central Office administration costs, we will need to continue to build the assets under management portfolio to generate greater asset management fees, FFSLF will need to continue to grow and contribute more net margin and planned gifts with FFS or ICFG as the beneficiary will need to come to fruition.!
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Total assets under management as of December, 2014 are $18M. (page 7).There are currently approximately $1.2M of irrevocable planned gifts for which FFS or ICFG are the beneficiary.! Page 8 shows the results of ICFG’s Aligned Business departments for 2014 compared to the Annual Operating Plan.! 2
Executive Summary (continued)! •
FFSLF net income for the twelve months ended December 31, 2014 was $663K, which includes $517K related to the gain on the sale of the San Pedro 2 property that closed in January (in addition to the $443K gain recorded in 2013). Without that gain, net income would have been $147K for the twelve months, which is $89K below Plan primarily due to low loan demand and excess liquidity early in the year. (page 9)!
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Interest revenue for the year was $54K (3%) under Plan and Fee Income was projected to be $28K (25%) above Plan (page 9)!
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Interest expense for the year was $89K (8.8%) above Plan due to higher than anticipated investment certificate activity early in the year (mostly transfers from IFLF). Since the investment certificate balances exceeded loan demand through April, ICFG withdrew a $4.1M loan certificate that matured on April 18. This reduced the amount of excess cash on hand to mitigate the interest expense being paid on idle funds. ICFG still has a commitment to fund an additional $6.1M of investment certificates when needed to fulfill the total commitment of $10M.!
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The lower than anticipated loan volume also resulted in the Management fee being $46K (9%) below Plan. (page 9)!
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As of December 31, 2014 we had $9.3M in cash available to fund loans and $32.3M of loans outstanding. Total investment certificates outstanding were $38.97M. (page 10)!
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Loan Pipeline (including committed to Fund, loans in underwriting and applications expected) is approximately $10M. The amount of Capital available for funding loans and to fulfill capital and liquidity requirements is being closely monitored.!
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2014 Statement of Activities Full Year Actual vs Plan!
4
2014 Statement of Activities Full Year Actual vs Plan (con’t)!
Statement of Activities by department for the twelve months ended December 31, 2014!
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Statement of Financial Position As of December 31, 2014!
7
ICFG Aligned Business Departmental Results for the year ended December 31, 2014!
8
FFS Loan Fund 2014 Statement of Activities Full Year Actual vs Plan!
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FFS Loan Fund Statement of Financial Position as of December 31, 2014!
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Executive Summary! •
FFS reported net operating income of $15K for the twelve months ended December 31, 2014, which is $25K below Plan. (pages 4-5)The major components of this variance are management fees below Plan ($135K), Professional/Contract Services expense above plan ($38K) and asset management fee income below Plan ($30K), offset by Advertising expense below Plan ($59K), Compensation expense below Plan ($47K), Travel expense below Plan ($17K), Convention expense below plan ($14K), Telephone expense below plan ($13K), Cable and internet expense below Plan ($12K), and Graphic Services expense below Plan ($10K). (page 7).!
•
Page 6 shows the Statement of Activities by department for the twelve months ended December 31, 2014. For 2014, FFS operated slightly above breakeven including the $250K subsidy from the Foundation to support Planned Giving. This support ($96K net of expenses) and the income upstreamed from FFSLF ($151K) cover the cost of field services, customer support and admin which are the only costs not covered by management fees from ICFG or the Foursquare Foundation. !
•
In order for FFS to generate sustainable profits in the long term to help cover Central Office administration costs, we will need to continue to build the assets under management portfolio to generate greater asset management fees, FFSLF will need to continue to grow and contribute more net margin and planned gifts with FFS or ICFG as the beneficiary will need to come to fruition.!
! • •
Total assets under management as of December, 2014 are $18M. (page 7).There are currently approximately $1.2M of irrevocable planned gifts for which FFS or ICFG are the beneficiary.! Page 8 shows the results of ICFG’s Aligned Business departments for 2014 compared to the Annual Operating Plan.! 2
Executive Summary (continued)! •
FFSLF net income for the twelve months ended December 31, 2014 was $663K, which includes $517K related to the gain on the sale of the San Pedro 2 property that closed in January (in addition to the $443K gain recorded in 2013). Without that gain, net income would have been $147K for the twelve months, which is $89K below Plan primarily due to low loan demand and excess liquidity early in the year. (page 9)!
•
Interest revenue for the year was $54K (3%) under Plan and Fee Income was projected to be $28K (25%) above Plan (page 9)!
•
Interest expense for the year was $89K (8.8%) above Plan due to higher than anticipated investment certificate activity early in the year (mostly transfers from IFLF). Since the investment certificate balances exceeded loan demand through April, ICFG withdrew a $4.1M loan certificate that matured on April 18. This reduced the amount of excess cash on hand to mitigate the interest expense being paid on idle funds. ICFG still has a commitment to fund an additional $6.1M of investment certificates when needed to fulfill the total commitment of $10M.!
•
The lower than anticipated loan volume also resulted in the Management fee being $46K (9%) below Plan. (page 9)!
•
As of December 31, 2014 we had $9.3M in cash available to fund loans and $32.3M of loans outstanding. Total investment certificates outstanding were $38.97M. (page 10)!
•
Loan Pipeline (including committed to Fund, loans in underwriting and applications expected) is approximately $10M. The amount of Capital available for funding loans and to fulfill capital and liquidity requirements is being closely monitored.!
3
2014 Statement of Activities Full Year Actual vs Plan!
4
2014 Statement of Activities Full Year Actual vs Plan (con’t)!
Statement of Activities by department for the twelve months ended December 31, 2014!
6
Statement of Financial Position As of December 31, 2014!
7
ICFG Aligned Business Departmental Results for the year ended December 31, 2014!
8
FFS Loan Fund 2014 Statement of Activities Full Year Actual vs Plan!
9
FFS Loan Fund Statement of Financial Position as of December 31, 2014!
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