Following on a recent announcement from our General Secretary about upcoming changes to our staffing structure, this post provides further information and clarity with respect to the financial impact.
At its February meeting, the Finance Committee heard Christie outline her proposed changes in the staff structure with the net effect of:
- adding 0.15 full-time equivalents, effective October 1, and
- increasing the salaries for nine positions to bring them in line with averages for non-profits in our region, effective immediately.
The staffing changes would take advantage of several current openings, meet her stated goals, and happen at the same time to promote synergies. The changes add spending of $60,000 (inclusive of taxes and benefits) for the remainder of FY 2017. The 2018 budget will need to include the full-year effect. The increased spending appears sustainable for two reasons: a more robust development effort, including attention to planned giving, should improve trends in individual giving, which have been in decline for several years. In addition, PYM sees a larger-than-average pipeline of bequests in 2017-2018 that will increase investment income.
Finance Committee united in agreeing to overspend staffing by $60,000 versus budget and in recommending it to Administrative Council. Staff spending is now expected to be 3.4% higher than budgeted, almost certainly offset to some extent by cost savings in other areas. The Administrative Council accepted the recommendation at its meeting on February 18.
The approved budget gives the General Secretary a staffing budget or “envelope” as part of the annual budget process. The General Secretary has authority to make any staffing changes within the envelope.
Once approved at Annual Sessions, the PYM budget doesn’t change. What changes is the expected variance to budget as PYM lives into each new fiscal year. The FY 2017 budget has $1.76 million in staff salaries, wages, taxes and benefits, covering permanent and casual staff. It accounts for 60% of the general fund budget of $2.9 million. (Please note: Much of PYM’s program activity and all its granting happen in the restricted fund budget, which last year provided $1.3 million in spending on top of the general fund budget.) Through March, before the General Secretary’s changes begin to take effect on April 1, the staff actual-to-budget will be right on target.
PYM Interim Treasurer