Question

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
($ in thousands)	Planned	Actual
Revenues	$55,859.6	$55,054.0
Expenses
Salaries	27,900.0	29,000.0
Other personnel costs	6,975.0	6,786.0
Occupancy costs	3,859.6	5,650.0
Reimbursement to local units	1,480.0	1,600.0
Other membership services	1,050.0	1,000.0
Printing and paper	525.0	640.0
Postage and shipping	220.0	242.0
General and administrative	1,090.0	1,076.0
Excess of revenues over expenses	$12,760.0	$ 9,060.0

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
*Compute as a ratio. Round three decimal places.
Financial information
Total revenues	Answer	Answer
Total costs	Answer	Answer
Journal advertising	Answer	Answer
ROI (round to three decimal places)	Answer	Answer
Residual income
Income	Answer	Answer
Minimum return	Answer	Answer
Residual income	Answer	Answer
Customer information
Course attendance	Answer	Answer
Technical reports sold	Answer	Answer
Operating criteria
Average cost per special publication	Answer	Answer
Average cost per magazine	Answer	Answer
Other personnel costs vs. salaries*	Answer	Answer

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

Success areas:

1.	AnswerMore reports were soldROI increased significantlyTotal revenues increased while total costs decreased
2.	AnswerOther personnel costs were less in relation to salariesPublication costs went downResidual income increased significantly
3.	AnswerAdvertising revenue went upMore people took coursesTotal revenues increased while total costs decreased

Failure areas:

1.	AnswerAdvertising revenue went downLess reports were soldTotal revenues decreased while total costs increased
2.	AnswerLess reports were soldOther personnel costs were more in relation to salariesROI decreased significantly
3.	AnswerAdvertising revenue went downOther personnel costs were more in relation to salariesResidual income decreased significantly

Answer 1

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