During the past year, we have encountered many different challenges and/or opportunities for improvement. While this past year has included some uncertainty in navigating COVID-19 and its effects on the construction industry, it’s also enabled us to ensure we are looking at the big picture and have contingency plans in place.
I’m happy to report that our Association remains on solid financial ground. Our balance sheet is strong with $10.5 million in assets and $6 million in working capital, and I remain confident in CFMA’s position and ability to support our operations and continue implementing our strategic plan.
Coming Out of the Gate
Although CFMA had approved the budget prior to the start of FYE 2021, given the pandemic and its potential impacts across many key areas, it was in the best interests of CFMA to review the budget again. Without hesitation, the team jumped back in and reworked the budget within a few weeks. While the revised budget had a more conservative approach, it still focused on our strategic plan initiatives, including the rollout of our new and improved website. The revised budget projected a loss of $344,000.
The membership renewal rate was revised to 70% and came in a tick under 80%, and we ended the year with 8,418 members. CFMA’s 2020 Virtual Conference was also a success. Being held virtually with only a few months to plan, attendance exceeded budgeted expectations and resulted in profitability.
On the education front, there were a total of 19,563 education program attendees and 33,318.5 CPE credits issued.
Thirty-three chapter leaders attended the virtual CFMA at Spring Creek retreat, which was provided at no charge to attendees again this year. In addition, more than $160,000 in CFMA’s Support Training and Resources (STAR) Program funds were used by chapters to help pay for chapter administrators, strategic planning, marketing, and education.
The Final Stretch
Our reserve fund portfolio performance exceeded expectations over the last 12 months, while continuing to provide fund diversity and asset allocation protection. We do not budget for investment gains or losses, but the gain increased the overall financial results for FYE 2021 by $662,000, which strengthened the bottom line.
FYE 2021 concluded with a net income of $1.433 million, thanks to the commitment and tireless work of CFMA’s volunteers and HQ staff.
CFMA’s Executive Committee approved the budget for FYE 2022, which is based on a slight membership renewal increase (82%) and budgeting for a hybrid conference model. This budget anticipates revenue of $6.7 million and a projected net loss of $427,000. In addition, with the CFMA/ICCIFP merger complete, we have a budgeted merger income of $425,000. With this addition, the overall budget is projected to have a negative change in unrestricted net assets of $2,000.
CFMA would not be able to provide exceptional member value and chapter support without our affinity, education, and Principal Partners. Their continued commitment to and support of CFMA are greatly appreciated, and even more so during this past year.
I would like to thank the members of our Finance Committee as well as our Investment and Audit Subcommittees for their dedication to the oversight of CFMA’s finances. They showed up prepared, asked thoughtful questions, and challenged our thinking throughout the year. I would also like to thank Stacey Scholl, CFMA’s Director of Finance, for her help with providing reports, ratios, and forecasts that our committees requested beyond the standard reporting.
Finally, I want to thank you for the opportunity, honor, and privilege to serve as CFMA’s Treasurer. I look forward to the continued success of CFMA and working with Kevin Foley, CFMA’s 2021-22 Treasurer.