Controller's Report
Controller’s Report one of IOMA’s most respected publications, aimed at corporate controllers in companies of all sizes. Provides benchmarks on virtually every cost area controllers are responsible for (in the Staying Current section), along with articles on FINANCIAL LEADERSHIP, and KEEPING CONTROL, which show by interview or case study how controllers are contributing to the financial stability and growth of their companies. Now available in an exciting 2-color format, 20 pages, with a monthly Profile that details the achievements of a particularly successful financial executive and gives readers insights into duplicating that success.
November 2008 - Table of Contents
In the fourth quarter, most controllers ready themselves for their annual performance reviews. Such preparation usually includes the development of a list of accomplishments, as well as a review of their performance in comparison to goals.
Premiums for liability and property insurance are still declining for most companies. Proof: In a survey of second-quarter renewals by the Council of Insurance Agents & Brokers, premiums dropped an average 12.9 percent across all respondents.
Prices are weakening, but costs are rising. This is the basic business dilemma that many CEOs and their teams now face in our slowing, yet inflationary economy. Key point: Controllers often play a critical role as management teams chart a course, largely through their expertise at summarizing, analyzing, and forecasting business activity and financial position.
Benchmarks for capital spending at manufacturers are available in the two associated tables. Developed by Grant Thornton, these show capital equipment spending as a percentage of sales (Table 1) and planned increases in capital spending in 2007 (Table 2).
THE CONTROLLER’S JOB IN TODAY’S ENVIRONMENT: Nov. 3-5, San Francisco. Contact: www.amanet.org
THE CONTROLLERS WORKSHOP: Nov. 4, Phoenix; Nov. 5, Oklahoma City; Nov. 6, Tucson, Ariz.; Nov. 12, King of Prussia, Pa.; Nov. 17, Albany, N.Y.; Dec. 1, Anaheim, Calif.; Dec. 3, Pasadena, Calif. Contact: www.skillpath.com
FAS 109—INCOME TAX REPORTING: Nov. 5-6, Kissimmee, Fla.; Nov. 20-21, Chicago. Contact: www.eeiconferences.com …
In meetings with their CEOs, increasing numbers of controllers at small companies—those with less than 50 employees—are considering making dental benefits voluntary. Definition: With voluntary benefits, organizations enable their employees to buy, say, additional disability coverage, certain types of legal assistance, and pet insurance via payroll deductions. In this way, employers enrich their benefit offerings, while employees incur all additional costs.
The accompanying table shows projected merit pay increases for employees at companies in five regions and with five employment levels. Developed by Report on Salary Surveys, an accompanying IOMA newsletter, this table shows 2009 merit increases averaging 3.8 percent across all respondents.
Benchmarks for Purchasing Department Spending in 20 Industries Average Training Budgets Per FTE in 18 Industry Groups How Much Do Companies Spend to Make a Sale? New Metrics New Emphasis on Security Expenditures: Today’s Cost Norms New Benchmarks Help Companies Evaluate Workforce Costs Latest Developments in Outsourcing and Manufacturing in Low-Cost Countries…
When negotiating health plan coverage, many CR readers take with a grain of salt the cost-increase forecasts of managed-care organizations (MCOs), pharmacy benefit managers (PBMs), and third-party administrators (TPAs). Reason: Experience has taught these controllers that there is usually a significant difference between these forecasted increases and the actual cost increases that their employers incur.
Some controllers might fault Manufacturing 2007, a study from the Manufacturing Performance Institute (MPI), for failing to define world-class manufacturing. Instead, this excellent study simply points out that 26 percent of its 798 American respondents and 35 percent of its 145 Canadian participants claim significant progress toward, or achievement of, world-class status.
Lower Corporate Benefits Spending by Fine-Tuning Our Plan
Challenge: Keep the increase in our HMO premiums near 8 percent.
Action: First, we adjusted our copayment structure, raising the cost for doctor visits from $17 to $20. Then, we increased copayments for prescriptions—$10 for generic, $25 for formulary brand name, and $42 for nonformulary brand name—and raised our per-admission copay for hospitalization to $250. This helped reduce the cost of renewing our insurance from a 10 percent…
Planning benchmarks for 2009 travel budgets are available to controllers in a valuable research series from Business Travel News (BTN), a leading trade newspaper. These benchmarks include:
As a rule of thumb, companies save from $2,000 to $5,000 every time they cull an ineligible dependent from their health plan. Key point: In removing ineligible dependents, employers usually follow a two-step procedure. First, they ask employees to report covered dependents who are ineligible for health benefits because they have "aged out," have dropped out of college, or are ex-spouses. Following enrollment adjustments during this so-called amnesty period, companies ask for documentation—tax returns or school transcripts—from employees proving dependent eligibility.
Controllers will find benchmarks for evaluating audit fees in the associated table. Based on information from Compliance Week, this table shows audit fees as a percentage of total fees that 10 companies paid to their auditors in 2006. Further, the table shows total fees as a percentage of company revenue. Upshot: With this table, CR readers can evaluate the mix of fees they pay their auditors as well as the level of their total fees.
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