Financial Report
Increased Funding Approved
Reaching a milestone anniversary against the backdrop of market uncertainty was not an ideal way to mark the occasion. States faced many challenges and difficult decisions last year, as inflation reached unprecedented levels. The Commission navigated this difficult climate by taking decisive action to ensure financial stability.
Although the Commission executed strong financial management in the past, ending the last five fiscal years under budget, it was still underfunded within its current dues structure. With anticipated capital expenditures for ICOTS and operating costs exceeding available dues and interest income, the Commission voted to raise dues for the first time since 2009.
Beginning in FY2024, member states’ dues will increase by 5.25 percent each year for five years with a three percent increase each year to follow. These changes to dues will alleviate inflationary pressures
and will support long-term financial stability.
Revenue & Expenses
Reaching a milestone anniversary against the backdrop of market uncertainty was not an ideal way to mark the occasion. States faced many challenges and difficult decisions last year, as inflation reached unprecedented levels. The Commission navigated this difficult climate by taking decisive action to ensure financial stability. Although the Commission executed strong financial management in the past, ending the last five fiscal years under budget, it was still underfunded within its current dues structure. With anticipated capital expenditures for ICOTS and operating costs exceeding available dues and interest income, the Commission voted to raise dues for the first time since 2009. Beginning in FY2024, member states’ dues will increase by 5.25 percent each year for five years with a three percent increase each year to follow. These changes to dues will alleviate inflationary pressures and will support long-term financial stability.
Cash Reserve Balance
We are thrilled to share the news that the Interstate Commission for Adult Offender Supervision (ICAOS) has accomplished a successful annual audit. This achievement underscores ICAOS's robust financial standing, efficient operational processes, and steadfast dedication to adhering to regulatory requirements.
20 Years
of Financials
Revenue and Expense by Fiscal Year
The chart of revenues and expenses over the history of the Commission reveals growth when needed to fund the technology and services required by the Compact. Indicated by the red line over time, the chart also reveals the Commission's emphasis on balanced budgets and efforts to operate under budget as reflected in successive years leading up to the FY2022 budget when a one-time reduction in dues was implemented to ameliorate challenges caused by the COVID-19 pandemic.
Reserve Fund Balance History
The reserve fund balance history chart provides an overview of how the Commission has built financial integrity and long-term sustainability into its operations, growing over the years within a savings balance indicated in grey and eventually adopting an investment portfolio indicated in blue in FY2012 that includes a Vanguard investment balance in addition to liquidity within the remaining savings balance. Bolstered by significant market gains, the investment portfolio and savings balances have provided annual revenue that improved resources available to fund Commission priorities; however, increased expenses driven by inflationary pressures have led to recent larger transfers from savings and investment accounts to maintain services, including the migration of ICOTS to its new vendor. Over time, the approved dues increase structure adopted and implemented in FY2024 is expected to alleviate pressure on reserve balances and potentially allow for growth to fund continued capital improvements to the ICOTS system.