Balanced Scorecard Preparation The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a membership goal of 100,000 members with the following anticipated results (and actual results for the year-end) Worldwide Auditors' Association Revenues and Expenses For Year Ending November 30, 2017 Actual ($ in thousands) Planned $55,859.6 $55,054.0 Revenues Expenses Salaries 27,900.0 29,000.0 Other personnel costs 6,975.0 6,786.0 3,859.6 Occupancy costs 5,650.0 1,480.0 Reimbursement to local units 1,600.0 Other membership services 1,050.0 1,000.0 Printing and paper 525.0 640.0 Postage and shipping 242.0 220.0 General and administrative 1,090.0 1,076.0 $ 9,060.0 Excess of revenues over expenses $12,760.0 Additional information (PLANNED): Membership dues were increased from $360 to $400 at the beginning of the year. One-year subscriptions to Worldwide Auditor were anticipated to be 2,400 units. Advertising revenue was budgeted at $320,000. Each magazine was budgeted at a cost of $36. A total of 29,000 technical reports were anticipated at an average price of $80 with average costs of $22. The budgeted one-day courses had an anticipated attendance of 33,000 with an average fee of $450. The two-day courses had an anticipated attendance of 3,000 with an average fee of $770 per person. The organization began the year with net capital assets of $88,000,000 with a planned cost of capital of 9 percent Additional 2017 information (ACTUAL): Membership dues are $400 per year, of which $100 is considered to cover a one-year subscription to the association's journal. Other benefits include membership in the association and unit affiliation. One-year subscriptions to Worldwide Auditor are sold to nonmembers for $160 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $400,000 in advertising revenue. The cost per magazine was $40. A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $90. Average costs per publication were $24. The association offers a variety of continuing education courses to both members and nonmembers. During 2017, the one-day course, which cost participants an average of $500 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $800 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 $90,060,000 and had an actual cost of capital of 9 percent. Required a. Prepare a balanced scorecard for IAA for November 2017 with calculated key performance indicators presented in two columns for planned performance and actual performance-include key financial, customer, and operating performance indicators. Include all zeros with figures. For example, 2017 Planned Total Revenues for $55,859.6 (thousand) is entered as $55,859,600 2017 Planned 2017 Actual Financial information 55,859,600 $ Total revenues 55,054,000 Total costs 45,994,000 43,099,600 Journal advertising 400,000 320,000 10.06 ROI (round to three decimal places) 14.5 Residual income 9,060,000 Income $ 12,760,000 $ 7,920,000 8,105,400 Minimum return 4,840,000 $ 954,600 Residual income Customer information Course attendance 3,600 33,285 29,000 Technical reports sold 30,000 Operating criteria 36 x Average cost per special publication 40 x $ Average cost per magazine 36 $ 40 $ Other personnel costs vs. salaries* 25 23.4x *Compute as a ratio. Round three decimal places. b. Which of the evaluation areas you selected indicated success and which indicated failure? Success areas: More reports were sold 1. 2. Other personnel costs were less in rel 3. Advertising revenue went up Failure areas: 1 Total revenues decreased while total cc ROI decreased significantly 2. Residual income decreased significanth 3. Balanced Scorecard Preparation The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a membership goal of 100,000 members with the following anticipated results (and actual results for the year-end) Worldwide Auditors' Association Revenues and Expenses For Year Ending November 30, 2017 Actual ($ in thousands) Planned $55,859.6 $55,054.0 Revenues Expenses Salaries 27,900.0 29,000.0 Other personnel costs 6,975.0 6,786.0 3,859.6 Occupancy costs 5,650.0 1,480.0 Reimbursement to local units 1,600.0 Other membership services 1,050.0 1,000.0 Printing and paper 525.0 640.0 Postage and shipping 242.0 220.0 General and administrative 1,090.0 1,076.0 $ 9,060.0 Excess of revenues over expenses $12,760.0 Additional information (PLANNED): Membership dues were increased from $360 to $400 at the beginning of the year. One-year subscriptions to Worldwide Auditor were anticipated to be 2,400 units. Advertising revenue was budgeted at $320,000. Each magazine was budgeted at a cost of $36. A total of 29,000 technical reports were anticipated at an average price of $80 with average costs of $22. The budgeted one-day courses had an anticipated attendance of 33,000 with an average fee of $450. The two-day courses had an anticipated attendance of 3,000 with an average fee of $770 per person. The organization began the year with net capital assets of $88,000,000 with a planned cost of capital of 9 percent Additional 2017 information (ACTUAL): Membership dues are $400 per year, of which $100 is considered to cover a one-year subscription to the association's journal. Other benefits include membership in the association and unit affiliation. One-year subscriptions to Worldwide Auditor are sold to nonmembers for $160 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $400,000 in advertising revenue. The cost per magazine was $40. A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $90. Average costs per publication were $24. The association offers a variety of continuing education courses to both members and nonmembers. During 2017, the one-day course, which cost participants an average of $500 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $800 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 $90,060,000 and had an actual cost of capital of 9 percent. Required a. Prepare a balanced scorecard for IAA for November 2017 with calculated key performance indicators presented in two columns for planned performance and actual performance-include key financial, customer, and operating performance indicators. Include all zeros with figures. For example, 2017 Planned Total Revenues for $55,859.6 (thousand) is entered as $55,859,600 2017 Planned 2017 Actual Financial information 55,859,600 $ Total revenues 55,054,000 Total costs 45,994,000 43,099,600 Journal advertising 400,000 320,000 10.06 ROI (round to three decimal places) 14.5 Residual income 9,060,000 Income $ 12,760,000 $ 7,920,000 8,105,400 Minimum return 4,840,000 $ 954,600 Residual income Customer information Course attendance 3,600 33,285 29,000 Technical reports sold 30,000 Operating criteria 36 x Average cost per special publication 40 x $ Average cost per magazine 36 $ 40 $ Other personnel costs vs. salaries* 25 23.4x *Compute as a ratio. Round three decimal places. b. Which of the evaluation areas you selected indicated success and which indicated failure? Success areas: More reports were sold 1. 2. Other personnel costs were less in rel 3. Advertising revenue went up Failure areas: 1 Total revenues decreased while total cc ROI decreased significantly 2. Residual income decreased significanth 3