Balanced Scorecard Preparation The following information is presented for the Worldwide Auditor's Association. In the budget of the current year, the organization had set a membership goal of 75,000 members with the following anticipated results (actual results for the year-end are also shown).

Additional information (PLANNED):

One-year subscriptions to Worldwide Auditor were anticipated to be 8,000 units. Advertising revenue was budgeted at $450,000. Each magazine was budgeted at a cost of $48. A total of 25,000 technical reports were anticipated at an average price of $100 with average costs of $36. The budgeted one-day courses had an anticipated attendance of 25,000 with an average fee of $600. The two-day courses had an anticipated attendance of 5,000 with an average fee of $1,000 per person. The organization began the year with net capital assets of $84,100,000 with a planned cost of capital of 6 percent.

Additional information (ACTUAL):

Membership dues are $480 per year, of which $100 is considered to cover a one-year subscription to the associations journal. Other benefits include membership in the association and unit affiliation. One-year subscriptions to Worldwide Auditor are sold to nonmembers for $120 each. A total of 10,000 of these subscriptions was sold. In addition to subscriptions, the journal generated $500,000 in advertising revenue. The cost per magazine was $50. A total of 30,000 technical reports was sold by the Books and Reports Department at an average unit selling price of $110. Average costs per publication were $36. The association offers a variety of continuing education courses to both members and nonmembers. During the year, the one-day course, which cost participants an average of $600 each, was attended by 25,600 people. A total of 3,800 people took two-day courses at a cost of $1,000 per person. General and administrative expenses include all other costs incurred by the corporate staff to operate the association. The organization has net capital assets of $87,230,000 and had an actual cost of capital of 6 percent.

Required a. Prepare a balanced scorecard for IAA for November with calculated key performance indicators presented in two columns for planned performance and actual performance--include key financial, customer, and operating performance indicators.

Notes:

• Include all zeros with figures. For example, Planned Total Revenues for $54,436 (thousand) is entered as $54,436,000.
• Do not use negative signs with any of your answers.

b. Which of the evaluation areas you selected indicated success and which indicated failure? Success areas:

\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} Worldwide Auditors' Association \\ Revenues and Expenses \\ For Year Ending November 30 \end{tabular}} \\ \hline (\$ in thousands) & Planned & Actual \\ \hline Revenues & $54,436 & $50,702 \\ \hline \multicolumn{3}{|l|}{ Expenses } \\ \hline Salaries & 28,000 & 28,050 \\ \hline Other personnel costs & 7,000 & 5,872 \\ \hline Occupancy costs & 6,000 & 5,545 \\ \hline Reimbursement to local units & 2,500 & 2,536 \\ \hline Other membership services & 1,500 & 1,200 \\ \hline Printing and paper & 500 & 383 \\ \hline Postage and shipping & 300 & 165 \\ \hline General and administrative & 1,000 & 845 \\ \hline Excess of revenues over expenses & $7,636 & $6,106 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & Planned & Actual \\ \hline \multicolumn{3}{|l|}{ Financial information } \\ \hline Total revenues & 0 & $ \\ \hline Total costs & 0 & 0 \\ \hline Journal advertising revenue & 0 & 0 \\ \hline ROI (round to three decimal places) & 0 & 0 \\ \hline \multicolumn{3}{|l|}{ Residual income } \\ \hline Income & 0 & $ \\ \hline Minimum return & 0 & 0 \\ \hline Residual income & 0 & $ \\ \hline \multicolumn{3}{|l|}{ Customer information } \\ \hline Course attendance & 0 & 0 \\ \hline Technical reports sold & 0 & 0 \\ \hline \multicolumn{3}{|l|}{ Operating criteria } \\ \hline Average cost per special publication & 0 & $ \\ \hline Average cost per magazine & 0 & $ \\ \hline Other personnel costs vs. salaries* & 0 & 0 \\ \hline \end{tabular} Failure areas: Please answer all parts of the