NCMA FY 09 Budget - Executive Summary and Assumptions

Overview

The budget has been prepared on a conservative basis.

Two new revenue streams are included:

Communities of Practice (CoPs) consisting of Dues, Sponsorships, Seminars and an Educational Conference and

an Academic Conference (Included in Meetings)

The FY 08 EAC numbers are based on the EAC prepared in January 2008.

Name Changes and Reclassifications

There have been the following name changes and reclassifications:

FY 09

FY 08

Old Communications Department - (Covering Advertising and Publications -This took place in Mid FY 08)

Revenues

Advertising

Communications

Expenses

Creative Services

Communications

New Communications Department (Covering Marketing, Advocacy and Legislative Affairs)

Revenues

N/A

Expenses

Salaries and Benefits

Communications

Administration

Marketing

Communications

Administration

Advocacy

Communications

Governance

Career Fair revenues and costs

Related conference (GCMC and WC)

Advertising

The new activities are classified as follows:

Communities of Practice (CoPs) revenues and costs have been included under Component Relations

The Academic Conference is included under Meetings

Three Year Budget

The FY 09 Budget has been prepared in the same manner and with the same supporting detail as in prior years.

In addition summarized top level budgets have also been prepared for FY 10 and FY 11 and will be distributed at the Budget meeting.

The comments in this Executive Summary are in respect of FY 09 only

Consolidated Budget

The FY 09 Budget, FY 08 EAC, and FY 08 Budget may be summarized as follows:

FY 09 Budget

FY 08 EAC

FY 08 Budget

Revenues

6,210,503

5,773,461

5,957,370

Expenses

6,134,759

5,773,254

5,891,149

Net Operating Income

75,744

207

66,221

Net Income %

1.22%

0.00%

1.11%

The Net Income percentage is stated before investment income, other expenses and income taxes.

The increase in budgeted revenues over FY 08 EAC is primarily attributable to;

Increased membership - individual and Group

Communities of Practice - new revenue stream

Increased NES and Audio Seminar and E-Learning revenues

Increased Website, Corporate Sponsorship and Educational Partners revenues

Increased Certification Exam Fees

Increased ADC,GCMC, and World Congress Revenues

New Academic Conference

The increase in budgeted expenses over FY 08 EAC is primarily attributable to;

Salaries and Benefits - see section below

Building

Communities of Practice - costs associated with new business activity

Marketing

Membership Services

NES and E-Learning variable costs

Resource Guide

CM Magazine

Website, Corporate Sponsorship and Educational Partners - variable costs

Certification Exam Fees

Increased ADC, GCC and WC costs

New Academic Conference

This increase has been partially offset by lower costs in:

Administration

Finance

Audio Seminars

Staffing

Salaries and Benefits

FY 09 Budget

FY 08 EAC

FY 08 Budget

Total Salaries and Benefits

1,974,067

1,751,519

1,842,447

As a percentage of revenues

31.8%

30.3%

30.9%

Number of Staff

FTE's

26.5

26.0

23.0

Pay raises are incorporated at 4% on staff anniversary dates.

An annual staff bonus of $45,000 is included in the FY 09 Budget (FY 08 Budget $45,000).

Analysis by Department

FY 09 Budget

FY 08 EAC

FY 08 Budget

Membership

4.00

One Customer Service Supervisor and Three Customer

Service Associates

An appropriate allocation of the Director of Operations time -

included under Administration in this schedule - is made

to membership in the monthly financial statements.

Education and Certification

4.00

Director of Education and Certification, Program Manager and

two Program Administrators - one Education and one

Certification

Advertising/Creative Services (Previously Communications)

5.00

Director of Creative Services, two Graphic Designers,

one Managing Editor and one Assistant Editor

Meetings

2.00

Director of Meetings and a Meeting Planner.

Administration

Executive Office

1.50

1.00

Executive Director and P/T Research Associate

Information Technology

1.00

0.00

1.00

IT Specialist - (IT Manager left in November 2007)

Finance

2.50

3.00

2.00

CFO - P/T, Senior and Staff Accountants

Operations

1.50

0.00

Director of Operations and P/T Assistant

Component Relations

2.00

1.00

Chapter Relations Manager and CoP Manager

New Communications Department

3.00

1.00

Director of Communications, Marketing Specialist and

Communications Specialist

Total staff by department

26.50

26.00

21.00

Total Salary and Benefit Costs

1,974,067

1,751,519

1,842,447

Percentage Increase of FY 09 Budget on

FY 08 EAC

12.7%

FY 08 Bud

7.1%

The overall increase in Salary and Benefit costs is explained by an increase in the number of staff compared to the FY 08 Budget and increase

in salary levels