Where We Are & Where CFMA Is Headed

By Kenneth L. Chiccotella, CCIFP, 2014-2015 Chairman

I’m proud to report that the hard work of our volunteers and HQ staff, along with significant returns from our reserve fund, resulted in a surplus of $490,945 for FYE 2015, which enables us to further advance CFMA.

How Did We Get Here?
Along with input from HQ staff, FYE 2014 Treasurer Brad Robinson, CCIFP, submitted the FYE 2015 budget with a deficit of $277,162.

This deficit budget reflected the desire of the Officers and Executive Committee to reinvest in CFMA’s chapters and provide tangible benefits to our members, and was largely attributed to the allocation of funds for the new Support Training And Resources (STAR) Program. Chapters could subsidize costs related to chapter administrative support, Spring Creek registration and/or travel, CFMA national education programs, CFMA’s national speaker program, and/or strategic planning.

Fifty-seven chapters used a little more than $136,000 of the budgeted $264,000 ($3,000 per chapter) STAR Program funds. The STAR Program supported Immediate Past Chairman Steve Tenney’s belief that “strong chapters create better member experiences, which increases the value of being part of CFMA.”

Significant accomplishments also included an 86.6% membership retention rate and 1,235 new members, which exceeded the budget of 85.1% and 1,100 respectively. These two results contributed to CFMA surpassing 7,000 members during the fiscal year!

In addition, there was certainly Strength in Numbers at CFMA’s 2014 Annual Conference & Exhibition in Las Vegas with 616 full Conference registrants who enjoyed the education, networking, and social activities. Conference attendance, generous sponsor and exhibitor support, and proper expense management all contributed favorably to the bottom line.

The investment return on our reserve fund also continues to add to CFMA’s bottom line. The 2015 fiscal year ended with a 4.9% return, a net change in the investment portfolio in excess of $119,000, and a portfolio balance in excess of $2,427,000 (which includes a $300,000 transfer from the operating fund to the reserve fund).

The positive results from the income statement yielded positive results on our balance sheet as well. We ended the year with approximately $6,900,000 in assets. Our working capital increased by $530,000 from $2,592,000 to $3,122,465.

Where Do We Go From Here?
The FYE 2016 budget reflects continued investment in education by allocating funds to update one course and develop two new ones. The STAR Program will be enhanced and expanded to allow reimbursement for chapter marketing expenses and additional education expenses.

Recognizing that CFMA at Spring Creek is essential to the development of future CFMA leaders, the retreat will be free to one leader from each chapter, including a travel stipend. All of this will be accomplished without an increase in member dues.

Final Thoughts
I would like to thank Rob Rubin, CFMA’s Vice President of Finance & Administration, for his leadership and guidance in managing the financial activities of our Association. Thanks also to President & CEO Stuart Binstock and the rest of the HQ staff for making plans and budgets become realities. A special thanks to all of the volunteers on the finance-related committees; your wisdom, insights, and time are invaluable!

The investments of our Affinity, Educational, and Principal Partners all continue to contribute to CFMA’s financial success. Without the support of these partners, we could not offer quality programs and activities to our members. Thank you all for your continued support of CFMA and its programs!

The opportunity to serve as Treasurer was truly an honor and a privilege. I look forward to serving as your Vice Chairman and to the future of CFMA!


Copyright © 2015 by the Construction Financial Management Association. All rights reserved. This article first appeared in CFMA Building Profits. Reprinted with permission.
Contact
publications@cfma.org for reprinting information.

Click here to view a PDF of this article.