Browsing through the pages of the Rose Kennedy Greenway Conservancy’s Annual Report reveals some interesting facts about how the Conservancy is managing the parks.
On the revenue side, State is providing nearly half of the funding being used for the burgeoning Conservancy. But the most surprising element that pops out from the numbers is on the expense side. The Conservancy reported only 1% of its total outlays toward maintenance and horticulture, which would appear inappropriately low for a “Green-way”. There have been almost no plantings this year, leaving several empty or unkempt patches. Instead, much of the Conservancy’s expenditures are dedicated for salaries, consultants, administrative expenses and toward events. For an organization whose main priority is supposed to be taking care of the parks, one has to question the spending priorities.
Salaries make up 31% of the total expenses, a high figure for a non-profit organization whose mission is to steward parkland. Since the Conservancy took over in February 2009, operating expenses grew by $826,000 over the prior year.
The Conservancy reported a surplus of $784,714. However, the State grant of $2 million is dispersed over two years or $1 million per year. Without this year’s piece of this grant, there would have been a deficit.
Endowment – Adding $1.6 million this year to the Endowment brings it to a whopping $12 million. The largest slice of the endowment and revenues is coming from taxpayers.
Private pledges are down significantly to $2.8 million in FY09 versus $4.0 million in FY08, though this is likely due to a tough economy.
Donated Goods and Services
Chiofaro Company – Contributed office space valued at $290,000 this year and $115,455 last year for a total of $405,000. (See this post: What is the quid pro quo between the Conservancy and The Chiofaro Company?)
Other donated services: Architecture Services: $174,362 (more building?) and Advertising: $72,250
Here are the numbers from the back of the Conservancy’s Annual Report. These figures are for the one year period ending June 30, 2009.
Revenue and Contributions – Money coming into the Conservancy
$2,000,000 49% Government support
By far, the largest revenue component is from the State’s MassDevelopment.
This is taxpayer money via a government grant to be dispersed over two years.
$561,531 14% In-kind (contributed, non-cash) revenue
Majority from The Chiofaro Company for free office space
$391,744 10% Contributions/Donations
$300,066 7% Event revenue
Conservancy shows every indication of making events a primary source of income
$290,250 7% Gala revenue
$261,960 6% Mothers Walk sales
$236,596 6% Interest and dividends
Interest on the approx. $12 million endowment
$10,894 0% Annual fund
$4,053,041 Total Revenue
Expenses by Function – Money Going Out
$1,023,387 31% Salaries
21 staff listed. At >30% of expenses, seems high for a park contractor.
$553,075 17% Consultants
How much real value was created by these consultants? It’s a big number.
$431,864 13% Events/Entertainment
Since the Conservancy only took over in February, this is likely going much higher.
$290,000 9% Rent
Not a cash expense, ‘donated’ by Chiofaro Company for Int’l Place offices
$228,763 7% Employee Benefits
$145,593 4% Legal/Accounting
$127,345 4% Sales/Marketing
$122,700 4% Engraving/Installation
For the Mother’s Walk? That’s almost half of the sales to engrave names!
$95,346 3% Office Expense
$50,781 2% Insurance
$50,000 2% Bad debt expense
$42,820 1% Service providers
$37,269 1% Maintenance/Horticulture
Since these are parks, doesn’t this seem low on the list?
$31,179 1% Travel/Entertainment
$28,011 1% Printing/Reproduction
$10,194 0% Other
$3,268,327 Total Expenses by Function