Presentation on theme: "Board Brief Operational Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting December 3, 2006 Tysons Corner, Virginia."— Presentation transcript:
Board Brief Operational Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting December 3, 2006 Tysons Corner, Virginia
Finance EACBUDGETACTUAL FY 07 FY 06FY 05FY 04FY 03 Revenue5,591,6665,518,3365,033,1024,806,4664,271,6393,807,322 Expenses5,563,6135,427,4894,960,7654,568,9914,091,7174,103,691 Net gain from operations28,05390,84872,337237,475179,921(296,369) Net Investment Revenue132,176106,63585,554129,389143,003126,962 IT Investment49,692 0000 UBI Tax90,000 108,000134,93035,75516,516 Net Gain (loss) after Taxes20,53657,79049,891231,934287,169*531,455 Annual growth is averaging ~10% since FY 03. Major investments in IT and Leadership Development Program beginning in FY 06.
Membership Year-to-Date Through October 2006 RevenuesEACActualVariance Membership Dues380,955363,045(17,911)-5% Initiation Fees13,68014,0403603% Associate Dues8,0798,150711% Retired Dues8,2118,4502393% Group Memberships158,592142,990(15,602)-10% Affinity Programs2,7952,662(133)-5% Merchandise Resales30(3) Total Membership Revenues572,314539,336 (32,978)-6% Expenses Salaries and Benefits60,08163,634(3,553)-6% General and Administrative4,4852,7491,73639% Membership Services19,75818,3421,4167% Communities of Interest000 Total Membership Expenses84,32384,724 (401)0%
Membership In FY06, we had $1,588,522 in membership revenue. We increased goal for FY07 to $1,634,850., based on plans to increase membership sales connected to conferences. Membership revenue was slightly higher than planned, so we increased the revenue forecast to $1,653,263 in the 10/06 EAC. Actuals 11/06 YTD $686,505 are running ahead of EAC $681,515. 17,802 members on 10/31/2006 vs. 17,642 10/31/2005.
Education Year-to-Date Through October 2006 RevenuesEACActualVariance NES33,84125,181(8,660)-26% Audio Seminars134,879141,2966,4175% Book Sales42,47040,064(2,406)-6% E-Learning15,53515,8653302% Total Education Revenues226,725222,406 (4,319)-2% Expenses Salaries and Benefits61,11661,400(285)0% General & Administrative1,7262,350(624)-36% NES21,24811,7409,50845% Audio Seminars62,56764,463(1,896)-3% Book Sales29,72629,5731531% E-Learning9,7119,5451662% Total Education Expenses186,094179,072 7,0224%
National Education Seminar (NES) Program In FY06, we had 63 seminars with $361,607 revenue. We increased goals for FY07 to 70 seminars and $446,005. revenue, based on a small price increase and a plan to increase number of seminars. We received fewer chapter commitments than planned, and we offered chapters discounts to generate more commitments, so we revised the revenue forecast to $380,465 in the 10/06 EAC. Actual revenues 11/06 YTD $43,614 are running behind of EAC $46,407. Significantly lower expenses so far this year due in part to less travel needed to support the NES’s we have performed. FY07 seminar is Leadership: Building High-Performance Buying & Selling Teams, available now. Continue to offer Best Contracting Practices for Business, Contract Negotiations, Performance Based Acquisition, Service Contracting: An Integrated Approach, Project Management in the Contracting Process, and The Contracting Professional as Risk Manager. FAR 45 Government Property Management seminar planned for when the final rule is released, probably in February. Earned Value Management (EVM) seminar developed, plan to release next fiscal year.
Audio-seminars Program In FY06, we had 10 seminars with $201,627 revenue. We increased goals for FY07 to 19 seminars and $217,350. revenue, based on plans to launch a contracting basics series. Seminar attendance has been significantly higher than planned, so we increased the revenue forecast to $342,479 in the 10/06 EAC. Actuals 11/06 YTD $156,709 are running ahead of EAC $152,579. December 13: GAO Sustained Protests - 2006 Year in Review. Basics series: –December 14: Acquisition Planning –January 11: Contract Structure and Content –February 15: Contract Formation Policies and Procedures –March 15: Contract Administration Policies and Processes
Book Sales In FY06, we had $118,974 in revenue. We reduced goal for FY07 to $102,269. revenue, because of concerns of market saturation of certification preparation manuals – particularly the GBK volume. Guide to Basic Contract Terms launch is earlier than plan, so we increased revenue forecast to $112,791 in the 10/06 EAC. Actuals 11/06 YTD $48,997 are running slightly behind EAC $50,707. Three new books are scheduled for publication in December 2006: –Leadership: Building High Performance Buying and Selling Teams – the NES manual, –Guide to Basic Contract Terms – the 3 rd edition, and –Annotated Guide to the Contract Management Body of Knowledge – the full text version of the CMBOK.
E-Learning In FY06, we had 6 course titles with 247 registrants, and $56,059 revenue. Goals for FY07 were kept similar to FY06 because of no plans to launch new courses, due to concerns of VCampus. Course registrations have exceeded forecasts; however, average price paid is lower than plan due to product mix, so we decreased the revenue forecast to $49,335 in the 10/06 EAC. Actuals 11/06 YTD $15,865 are running marginally higher than EAC $15,535.
Certification Year-to-Date Through October 2006 RevenuesEACActualVariance CPCM8,1497,161(988)-12% CFCM9,7918,451(1,340)-14% CCCM1,9502,35040021% Miscellaneous000 Total Certification Revenues19,89017,962(1,928)-10% ExpensesEACActualVariance Salaries and Benefits41,25341,0062471% General Program Expenses1,2352,022(788)-64% Certification Board2,829 00% CPCM300 100% CFCM2250 100% CCCM600 100% Total Certification Expenses45,63145,857 (226)0%
FY 06 TotalFY 07 YTD CCCM applications4515 CFCM applications16759 CPCM applications95 Total Cert Applications22179 Re-certifications454136 Federal Exam Attempt Pass Pass Rate 98 55 56% 15 8 53% Commercial Exam Attempt Pass Pass Rate 43 29 47% 16 8 50% General Exam Attempt Pass Pass Rate 107 28 26% 25 8 32% New CPCMs94 New CFCMs123 New CCCMs136 Total new Certificants3413
Certification Numbers of certification applicants, recertifications, and new certificants are running consistent with or ahead of FY 06 pace for the first four months of FY 07. Pass rates for Federal and Commercial Module Exams YTD are in the ballpark. ‘Target’ is 60%. General Business Module pass rate remains well below ‘target’, but is continuing to trend upward. NCMA reduced certification application fees effective July 1st, 2006 to bring mandatory program costs in line with that of the Certified Purchasing Manager (CPM) program offered by the Institute for Supply Management (ISM). CKO and Certification Program Administrator attended training on ANSI / ISO accreditation standards in mid-September. Requirements are quite formidable. CKO building business case and roadmap to accreditation weighing costs, benefits, and time required. A contract was signed in late October 2006 to convert to a new testing service provider (Kryterion). Go-live date is targeted for March 1, 2007. Current provider, Prometrics, has been the subject of numerous, valid customer complaints. A second contract with Kryterion was signed in late October 2006 for complete psychometric analysis of all versions of all three examinations (Federal, General Business, Commercial) and candidate results from new program inception to date. Results of this analysis are expected in January 2007. This analysis on a periodic basis is a requirement of ‘good practice’ consistent with pursuit of accreditation. It will provide a sound basis for changes to examination content to align future candidate results with program goals.
Meetings Year-to-Date Through October 2006 RevenuesEACActualVariance ADC (July)140,180 GCMC (December)00 Executive (February)00 World Congress (April)00 Total Education Revenues140,180 00% Expenses Salaries and Benefits42,07343,130(1,057)-3% General & Administrative2,6482,908(259)-10% ADC (July)79,325 GCMC (December) Executive (February) World Congress (April) Total Education Expenses124,046125,362 (1,316)-1%
Meetings The FY 07 plan dropped the Commercial Contracting Conference (October) and added the Executive Contract Management Conference (February). The Aerospace and Defense Contracting Conference held in Garden Grove, CA in July 2006 exceeded revenue budgets ($140,180 vs. $120,175). The Government Contract Management Conference will exceed revenue goals. No changes to forecasts for the remaining conferences.
Conference Portfolio Performance History FY2007FY2006FY2005FY2004FY2003 Aerospace and Defense Contracting Conference Revenue: $139,880 Expense:$78,721 Net: $61, 159 Revenue $104,804 Expense $58,499 Net $46,305 Revenue $161,250 Expense $69,342 Net $91,908 Revenue $203,878 Expense $107,099 Net $96,779 Not held in this fiscal period. Commercial Contracting Conference Not HeldRevenue $87,775 Expense $59,356 Net $28,419 Revenue $81,820 Expense $52,370 Net $29,450 Not held in this fiscal period. Revenue $101,825 Expense $79,992 Net $21,833 Executive Conference Forecast Revenue: $210,450 Expense: $156,238 Net: $54,212 Not Held Government Contracting Conference Forecast Revenue: $276,225 Expense: $138,194 Net: $138,030 Revenues $238,525 Expenses $114,644 Net $123,881 Revenues $248,490 Expenses $110,203 Net $138,287 Revenue $206,080 Expense $120,813 Net $85,267 Revenue $242,921 Expense $82,236 Net $160,685 World CongressForecast: Revenue: $1,096,775 Expense: $617,863 Net: $478,912 Revenue $ 927,805 Expense $ 515,907 Net $411,898 Revenue $956,648 Expense $454,832 Net $ 501,816 Revenue $855,026 Expense $577,124 Net $277,902 Revenue $673,188 Expense $477,274 Net $195,914 Total ConferencesForecast Net $ 732,313 Net $610,503Net $ 675,352Net $459,948Net $378,432
Communications Year-to-Date Through October 2006 RevenuesEACActualVariance Buyers Guide42,000 00% Career Programs151,189157,0505,8614% CM Magazine144,600144,274(326)0% Website16,45010,700(5,750)-35% Corporate Sponsorships10,00016,0006,00060% Educational Partners18,160 0 Reprints500374(126)-25% Total Communication Revenues382,898388,558 5,6591%
Communications Year-to-Date Through October 2006 ExpensesEACActualVariance Salaries and Benefits99,045100,161(1,116)-1% General and Administrative16,830 0 Board of Advisors Directory3,5000 100% Buyers Guide36,05036,064(14)0% Career Programs16,12016,0001201% Contract Management155,489155,812(323)0% BPA Audit2,919 00% Journal10,694 0-3% Website6,9734,9692,00429% Corporate Sponsorships2,750 00% Educational Partners5,1385,1371 Reprints000 Salaries and Benefits99,045100,161(1,116)-1% Total Communication Expenses355,508351,337 4,1711%
Communication In FY06, we had $1,291,451 in communication revenue. We decreased goal for FY07 to $1,273,387., based on education partner risks and hedging against drops in CMJobs.com ads. CM Magazine ads revenue was slightly lower than planned, so we decreased the revenue forecast to $1,264,402 in the 10/06 EAC.
Communications Contract Management Magazine Article submissions remain steady for the next several months…we are holding steady with ad revenue and anticipate ending the year at EAC of $534,800. The 2007 Resource Guide was polybagged with the November 2006 issue of Contract Management. A new NES brochure with dates and locations was polybagged with the December 2006 issue of Contract Management. A revised Knowledge Catalog will be polybagged with the January 2007 issue of Contract Management. Books The new NES book by Gregory A. Garrett, Leadership: Building High- Performance Buying and Selling Teams, is in the office. We are working on the companion workbook for the seminar…it will be ready for the December GCMC06 conference. This Leadership book as well as the newly revised Desktop Guide to Basic Contracting Terms and the CMBOK (annotated and revised) will be ready by to sell at the GCMC06.
Governance and Component Relations Year-to-Date Through October 2006 GovernanceEACActualVariance Board of Directors33,91332,4831,4304% Committees2,7432,24949418% Annual Report000 Total Governance36,65634,7321,9235% Component RelationsEACActualVariance Chapter Support33,23731,2541,9836% Awards9740 100% Board of Advisors252 00% Council of Fellows3,147 00% Leadership Development23,35223,696(344)0% Total Component Relations60,96158,3492,6134%
Administration Year-to-Date Through October 2006 AdministrationEACActualVariance Salaries and Benefits197,947197,854940% Administration154,044150,6673,3772% Building50,86350,4554081% Finance55,75057,306(1,556)-3% Marketing132,767129,3553,4123% Total Administration591,372585,6375,7351%
Special Projects Relocation –Sublease executed 10/15/06. –Purchase contract executed 11/29/06. –Move-in scheduled 2/15/07. IT systems –LAN management in-house effective 11/1/06. –Microsoft CRM go-live 12/22/06. –ResultsDirect CMS and EducationDirector kick- off 3/07.