1. Budget FY 2013 Kim Rupert, CPCM, CFCM Austin, Texas March 24, 2012

2. General Assumptions Moderate risk Economic uncertainty remains – federal procurement budget in decline. Income from all advertisement accounts continue to be at risk. No new revenue streams per se, although significant expansion in e-learning programs. Budgeted surplus from operations is 1.7% (FY12 EAC prepared in January 2012 is 1.7%, FY11 Actual was 12.5%). Assumes no net revenue from investments (although growth is possible). No costs included for possible joint operations with other Associations 2

3. Revenue Growth Assumptions Revenue increase over FY12 EAC prepared as of January 2012 is 3.6%. –2.2% decrease on FY12 budget Membership6.0% –Individuals, New Professionals Education11.6% –E-learning, Book Sales Advertising -2.4% –Resource Guide, CM Magazine, Corporate Sponsors, Education Partners partially offset by higher Website revenues Certification14.4% –Exam Fees Meetings1.1% –Small growth for WC, GCMC flat, - decline for ADC registrations 3

4. Changes from FY2012 Staff changes New Executive Director included for full year. Chief Learning Officer (CLO) and Chief Financial Officer (CFO) return to their prior responsibilities. Transfer of Funds Budget includes transfer of $25,000 to Building Fund but NO transfer to Restricted Funds. 4

5. Revenue Budget FY 13 EAC FY 12Variance Membership2,254,2522,126,127128,1256.0% Component Relations8,75010,970(2,220)(20.2%) Education932,795836,19996,59611.6% Advertising1,286,0561,318,074(32,018)(2.4%) Certification222,450194,40228,04814.4% Meetings2,281,3252,257,59523,7301.1% Total Revenue6,985,6286,743,367242,2613.6% 5

6. Expenses Budget FY 13 EAC FY 12Variance Governance126,400129,4183,0182.3% Component Relations173,724202,67628,95214.3% Administration2,245,5432,242,721(2,822)(0.1%) Marketing552,551517,182(35,369)(13.3%) Customer Service312,140286,889(25,251)(8.8%) Education582,314517,314(65,000)(12.6%) Creative Services1,289,8061,266,442(23,364)(1.8%) Certification154,330142,964(11,366)(8.9%) Meetings1,428,0831,319,915(108,168)(8.2%) Total Expenses6,864,8916,625,521(239,370)(3.6%) 6

7. Summary Budget FY 13 EAC FY 12Variance Revenue6,985,6286,743,366242,2623.6% Expenses6,864,8916,625,522(239,369)(3.6%) Net from operations120,737117,8442,8932.5% 7 Net Income % FY 13 Budget 1.7%, in line with FY 12 EAC – 1.7%. Smaller Margins than FY 12 Budget 4.4%, and FY 11 Actual 12.5%.

8. 8 Reserve Management Total investments as of 2/29/12 - $2.6 million Planned contribution of $100k to reserves in FY 12 (June) – in addition to $300K transferred in FY 11. FY 13 Budget incorporates –NO transfer to Restricted Reserves. –$25,000 transfer to Building Fund – (Unrestricted Reserves)

9. 9 9 Board Motion Motion: “Be it resolved that the NCMA Board of Directors approve the Fiscal Year - 2013 financial budget.”