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Budget 2010

Budget 2010

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Budget 2010

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  1. Budget 2010 DuWayne W. Jones, CPCM, Fellow Long Beach, California April 5, 2009

  2. General Assumptions Moderate to High Risk • Increased economic uncertainty. • Income from all advertisement accounts are at risk • Print ads down across all industries. • CMjobs.com is subject to employment trends beyond our control. • One new income streams – CoPs (Symposia $59k), and one expanding - E-Learning courses. • Budgeted deficit from operations is -2.15% (FY 09 EAC -0.94%, FY 08 1.22%).

  3. Revenue Growth Assumptions • Consolidated Revenue increase isolating out World Congress effect - FY 10 Budget over FY 09 EAC 2.1% • Membership (BUD/EAC) 1.1% • Education -5.0% • Audio-seminars • Advertising -4.1% • Resource guide, CM ads • Certification 2.3% • Meetings -55.5% • World Congress schedule change

  4. Changes from FY2009 • Eliminated Communications department. • Marketing expense in administration budget. • Communities of Practice (CoPs) moved to Education. • Meeting schedule changed: • World Congress schedule shift from April to July. • ADC from July to March – 2nd ADC in FY10.

  5. Changes from FY 2009 • Membership expenses has been renamed Customer Services Expenses • Marketing Specialist reclassified to Creative Services Dept. from Administration • FY 10 Budget includes $20,000 for Voiceover IP system. This would provide integration with audio, data and video applications and would replace the current telephone system that is over 12 years old. System would be leased

  6. Total Revenues

  7. No World Congress this FY! Recession of 2008-2009 Estimate Estimate Budget EAC

  8. Total Expenses

  9. Expense Summary • Lower salary and benefits costs reflecting staff reductions in January 2009 • Lower marketing costs (No WC – partially offset by 2 ADC’s) • Mid Year Conference in Jan 2010 • Leadership Summit in FY 2010 (July 2009) – none in FY 2009 • LDP – F&B recommended 40 students • Higher CM Magazine print costs offset by lower commission on lower sales • Salary survey available in electronic format • Journal will be produced in digital format • No material change in ADC (2) and GCMC budgets • New Academic Conference (Cancelled in FY 2009 – low risk)

  10. Investments • Restricted Investments. In light of the volatility and uncertainty in the markets net investment income has been included at zero (Investment Revenue of $12,000 offset by investment fees of $12,000) • Unrestricted investments – Assumed interest @ 0.5% on $208,000 = $1,040

  11. Reserve Management. • NCMA Operating Expenses FY 10 Budget - $4,906,579 • Restricted and Unrestricted Investments at COB 3/31/09 – Restricted $1,208,289 Unrestricted $ 208,603 Total $1,416,892 (A) • As % of Operating Expenses NCMA is currently at 27.7% • ASAE (12th Edition) Average is 41% • Applying this percentage to NCMA Operating Expenses = $2,011,697 (B) • The Delta = $594,805 (Difference between A and B)

  12. Risks Associated with FY 10 Budget • FY 09 EAC projects a loss –starting position for FY 10 • Relies extensively on line of credit • Risk is further compounded by weak economic climate and uncertainty of advertising revenues • Very low tolerance in additional volatility Bottom Line – Minimal margin for error

  13. Consolidated Budget

  14. Actions in light of Budget Realities • No transfer to Reserves in FY 2010 • Identify budget line to support replenishment in FY 2011 planning • Reduce Program Costs – reduction already incorporated in Budget Deliver Journal in electronic copy $ 35,876 • Reduce Program Costs - Proposed Chapter Rebates $90,800

  15. Board Motions Motion One: • “Be it resolved that the NCMA Board of Directors hereby waives distribution of chapter rebates for Fiscal Year – 2009.” Motion Two: • “Be it resolved that the NCMA Board of Directors approve the Fiscal Year - 2010 financial budget as amended on April 5, 2009.”