Operations Report and Annual Operating Plan Goals Review

Neal J. Couture, CPCMExecutive DirectorAugust 3, 2008

Objective 1: Develop the Next Generation of Contract Management Professionals

1-1 Increase student memberships from 468 to 700 (50% increase).

681 student members as of 3/31/08.

1-2 Increase the number of student chapters from 3 to 10.

“Box” campaign to targeted institutions.No chapters in chartering process at this time.

1-3 Increase conference content and activities for new professionals; incorporate a student program into Congress 2008.

Ohio students invited.New Professionals CoP breakfast.

1-4 Incorporate student pricing for conferences.

Done.

1-5 Increase use of students as on-site volunteers at conferences.

Students invited from Ohio area. None participating.

1-6 Expand “Contracting Fundamentals” audio-seminar program to 22 seminars.

Conducted 20 through 3rd quarter FY07-08.

1-7 Conduct the Contract Management Leadership Development Program (CMLDP).

Program 07-08 concludes at WC08. Program 08-09 selections made 3/07. 43 admitted.

Objective 1: Develop the Next Generation of Contract Management Professionals (continued)

1-8 Publish the notional CM curriculum for undergraduate and graduate majors and minors, and professional certificate programs.

Under discussion at University Relations Committee.

1-9 Conduct career fairs at GCMC and WC2008.

GCMC career fair held w/20 exhibits.WC2008 planned, 28 exhibitors.

1-10 Launch student community of interest, including website, listserv, blogs, StudentConnect e-newsletter, etc.

Launching at WC08.

1-11 Increase internship listings on CMjobs.com.

Three internships presently listed.

1-12 Conduct the W. Gregor Macfarlan Excellence in Contract Management Research and Writing Program, and increase participation and publicity.

Articles from 2007 published in Journal 9/07.Call for submissions for 2008 issued, received 15 submissions, under evaluation.

Objective 2: Increase Professional Advocacy

2-1 Develop a plan for implementing a public relations system, including targeted communications to various media outlets, government agencies, and other individuals.

Vocus PR system Operational 1/08.More than a dozen press releases and interviews issued.

2-2 Develop a plan for implementing a grassroots advocacy system, including communications to members about specific issues, and receiving input from members.

Communications plan in development.

2-3 Launch a breakfast series to connect Congressional staffers to the CM community.

In logistics planning.

2-4 Expand the Board of Advisors by 25% to include more executives from government and industry.

BOA at 169, an increase of 69%.Increased attendance at BOA meetings.

Objective 2: Increase Professional Advocacy (continued)

2-5 Implement complimentary CM subscription campaigns to introduce people to the CM profession and NCMA, using one of our most valued assets.

Subscriptions started in April. Approximately 5,000 prospects at start. Next step is to target market prospects.

2-6 Publish a 2007 Salary Survey. Published 2/08.

2-7 Expand DAU/FAI equivalency, and increase publicity.

Executed MOUs with DAU and FAI.

2-8 Increase the number of certified professionals by improving recertification rates and increasing the number of applicants.

Certification applications up >40%.Certificants 2nd Q up significantly from last year. GBK exam pass rate improved.

2-9 Increase press presence at conferences.

More than a dozen press releases issued 2nd Q FY08. Federal Times at WC2008.

2-10 Expand CM Week publicity and activities.

More than 50 proclamations received. Press releases issued. 50th anniversary in planning.

Objective 2: Increase Professional Advocacy (continued)

2-11 Publish informational papers about issues of the profession.

Published input on S.680 in CM.Nothing else “published” to date.

2-12 Research and publish organizational performance benchmark standards.

Position standards approved by Committee, publish following WC08.CM2 Initiative announced.

2-13 Finalize plans for 50th anniversary in 2009.

Planning in process.Book research in process by Pursch.History of Federal Procurement Monograph, 2nd edition, project initiated.

Objective 3: Reach More People in the Federal Contracting Community

3-1 Increase the value of membership by introducing new members-only benefits.

Website redesign launched, providing members-only content.

3-2 Increase the number of members by 5%.

18,259 members as of 3/31/08, an increase of 3% from beginning of FY.

3-3 Increase NES participation to 58 seminars and 2,462 attendees.

Chapter commitments near goal – 55 vs. 58, but average attendance is 40.5 vs. 42.4.

3-4 Increase audio-seminars participation to 26 sessions, 2600 sites and 13,000 participants.

Conducted 22 sessions to date, 1809 sites, 10,854 participants.

3-5 Develop and field between one to three new e-courses of NCMA design.

Version of the “Solicitations, Bids, Proposals, and Source Selection” NES was launched January 2008. New EducationDirector system to be launched 4/07 following WC08. Content sources for new programs being identified.

Objective 3: Reach More People in the Federal Contracting Community (continued)

3-6 Increase certification participation to 288 new applications and 495 re-certifications.

Increase in cert and recert applications 3rd Q compared to last year.

3-7 Increase conference paid attendance to 1489, including 189 for ADC, 391 for GCMC, 40 for EC, and 869 for WC2008.

176 ADC. 408 GCMC. Congress projected 800. EC deleted from plan.

3-8 Expand career fairs at GCMC and WC2008.

GCMC fair had 120 participants and 20 exhibitors, more activities.WC2008 28 tables sold.

3-9 Implement complimentary CM subscription campaigns to customers of education partners, advertisers and corporate sponsors to sell memberships, conference and seminar registrations, and certification applications (re: 2-5).

Subscriptions started in April. Approximately 5,000 prospects at start. Next step is to target market prospects.

Objective 3: Reach More People in the Federal Contracting Community (continued)

3-10 Expand the Board of Advisors by 25% (re: 2-4).

BOA at 169, an increase of 69%.Increased attendance at BOA meetings.

3-11 Develop plan to launch Communities of Practice.

Launch at WC08. At least three sponsors signed up for each community. Steering committee’s appointed. Websites created and being populated. Will start member signup at WC08.

3-12 Increase advertisement sales in federal market to replace departing commercial clients.

Overall ad sales increased 17.8% through 3rd Q from last FY. CM magazine ads up 5.9%, Resource Guide up 43.6%, Website ads up 67.4%.

7.9% annual growth rate!

.035% variance from budget!

Revenue Unaudited FY07-08

Actual Budget Last Year

Membership 1,678,941 1,773,224 1,684,887

Advertising 1,550,769 1,397,642 1,402,310

Education 900,340 1,002,564 807,066

Certification 71,481 106,065 77,173

Conferences 1,727,637 1,669,475 1,527,283

Total Revenue 5,936,515 5,957,370 5,504,119

Income Statement – unaudited FY07-08

Actual Budget Last Year

Revenue 5,936,515 5,957,370 5,504,119

Expense 5,908,590 5,891,150 5,537,739

Net from Operations 27,925 66,220 (33,619)

Investments (115,191) 120,000 269,255

Taxes (90,000) (90,000) (100,000)

Total Gain/(Loss) (177,266) 96,220 135,636

$61,500 improvement in operations from last year!

$384,000 negative variance in investments from last year!

New IRS Form 990

This is a Form Required to be Filed Annually by most Tax-Exempt Organizations – including NCMA

History• Last major revision was in 1979• In light of several recent scandals (e.g. World Wildlife Fund)

Congress determined insufficient information required in old Form 990

• Directed IRS to develop new form• IRS acted very quickly – First Draft Issued June 2007• Final Draft issued December 2007• Final Comments were due by June 1, 2008• Final Form and Final Instructions – Fall 2008

Objectives of the New Form per IRS

•Enhance Transparency•Promote Compliance•Burden Minimization (while accomplishing the other

two goals)

Effective Date for NCMA

•First applies for the year ending June 30, 2009 – Filing date November 15, 2009

•This means the next filing (November 15, 2008) for the year ended June 30, 2008 NCMA will be using the old form

•Very advantageous from the perspective of NCMA as there are many uncertainties and ambiguities in the new form and instructions

•A lot of these should be clarified over the next year

Highlights of the New Form

•Old Form – 9 page core – 2 supporting schedules•New Form – 11 page core – 16 supporting schedules•AICPA estimates that it will take 28 hours to read

and understand new instructions•Was a tax return – now both a tax return and an

information return•Remains a public document – may become an

organizational annual report to constituents

Reaction to the New Form

•Example of IRS overreaction•Sarbannes Oxley spillover•Body of opinion in AICPA who consider this one

further step by the IRS in their goal of integrating all their tax databases – allowing cross checking of all personal and business data reported

•Will increase tax filing fees by 2X to 3X

What Does This Mean to NCMA ?

•Focus on Governance and Compensation• IRS has no authority to ask about Governance but is

asking anyway – their theory being that good governance is good operations and good compliance with tax policy

•Some Associations are considering declining to answer all Governance questions – but may raise audit profile

What does this Mean to NCMA – Governance Information Requested on the Following:

• Board Structure• Voting Procedures• Independence Matters – e.g. Is there an independent

contractor used by NCMA who has a relationship with a Board member

• Relationships between Directors, Officers and Key Employees

• Are minutes taken for all Board and Committee meetings• Is there a Conflict of Interest Policy• Is there a Retention and Destruction Policy• Is there a Whistleblower Policy• List of all Directors

What does this Mean to NCMA – Compensation Information Requested on the Following:

• Disclose compensation of five highest paid employees over $100,000

• Disclose compensation paid to former Directors – if over $10,000 – 5 year look back period

• Are there written polices on Governance expenses• Disclosures re First class travel• Is supporting documentation required• How is compensation of Executive Director established• What bonuses are paid and on what basis

• Note: Both the Governance and Compensation requirements are still being negotiated by the IRS and interested parties (AICPA) and may be subject to change

What does this Mean to NCMA – Activities:

•Description of Mission•Provide list of accomplishments/activities during

the year – addressing three largest programs•Total number of employees•Estimated number of volunteers used•Establish process for Board to review Form 990 •New Schedule O – This asks essentially if there is

anything not requested by the Form 990 but that you would nevertheless like to disclose

•Extensive additional information required in respect of the Unrelated Business Income Tax calculation

Summary

•“We’ll try to cooperate with the IRS, because as citizens, we feel a strong patriotic duty not to go to jail” – Dave Barry

New governance website

Chapter Feedback Survey

•Annual requirements per Chapter Policy.•Survey issued July 16th to all chapter volunteers on record.•127 responses received, 27 from Chapter Presidents.•Median volunteer experience = 4 yrs•25-50% of respondents had no opinion for many questions.•Concern about # of respondents that don’t know what

CMLDP, CoPs and Macfarlan programs are.•80% contacted national office, 88% rated us ‘responsive’.•Areas of improvement needed:

– Membership reports– Certification preparation materials

Membership Survey

•27,116 surveyed, 3,306 responses (12% response rate).•Age: small decrease in avg age to 48.3 y.o., but there are

more people <35 y.o. and less 45-54 range.•Race: 72% C, 10% AA, 4% H, 3% A, 1% NA•Education: unchanged – 12% ND, 88% B, 51% M, 7% D•Experience: avg remains 16 yrs, but more <5 yrs•Certification: fewer NCMA certification-holders as % of

respondents; likely broader survey distribution.•Employers: shift towards more industry continues.•Levels: fewer

Membership Survey (cont.)

•Reasons for not renewing membership are shifting:– Fewer cite dues amount, no time, or dissatisfaction.– More cite other, miscellaneous (personal) reasons.

•Fewer people are joining for personal growth and development reasons.

•Factors affecting continued membership: continuing education opportunities, and my career plans.

•Employers are increasingly paying dues; 30% personally pay for their continuing education.

•Trend of preference for all things ‘virtual’: increased value of audio seminars, e-courses, websites, CMjobs.com

Membership Survey (cont.)

• Overall satisfaction is improving?– Very satisfied increased from 29% (2005) to 36% (2008)– Dissatisfied decreased from 10% (2005) to 4% (2008)

• Issues that concern members (very important):– Best contracting practices.– Ethics.– Career development.– Cost and pricing.

• Moving up:– Certification and education.– Long term job security.– Aging of the workforce.– Contracting as core organizational workforce.– The economy.– International contracting.

Executive (1) Neal Couture, CPCM, Executive Director

Executive (1) Neal Couture, CPCM, Executive Director

Finance and Accounting (2.5)Sam Smith, CFO (P/T)

Penny Robinson, Staff AccountantNatasha Aliaj, Staff Accountant

Finance and Accounting (2.5)Sam Smith, CFO (P/T)

Penny Robinson, Staff AccountantNatasha Aliaj, Staff Accountant

Creative Services and Advertising (5)Will Kohudic, Director

Jennifer Reitz, Sr. Graphic DesignerChris Hansen, Graphic DesignerKerry McKinnon, Managing Editor

Ryan Burke, Asst Editor

Creative Services and Advertising (5)Will Kohudic, Director

Jennifer Reitz, Sr. Graphic DesignerChris Hansen, Graphic DesignerKerry McKinnon, Managing Editor

Ryan Burke, Asst Editor

Operations Management (6.5)Cambria Tidwell, Director

Correen Dingle, CS SupervisorBlake Boynton, April Silverthorn, Kim Hollman, CSRs

Vacancies: Database Specialist, Admin Asst (P/T)

Operations Management (6.5)Cambria Tidwell, Director

Correen Dingle, CS SupervisorBlake Boynton, April Silverthorn, Kim Hollman, CSRs

Vacancies: Database Specialist, Admin Asst (P/T)

Education and Certification (4) Dr. John Wilkinson, CPCM, Director

Michael Sturm, PMP, Program ManagerSusan Esprella, Education Administrator

Alex Rodriguez, Certification AdministratorTena Daye, e-learning Administrator

Education and Certification (4) Dr. John Wilkinson, CPCM, Director

Michael Sturm, PMP, Program ManagerSusan Esprella, Education Administrator

Alex Rodriguez, Certification AdministratorTena Daye, e-learning Administrator

Communications (4)Eileen Moore, Director

Mary Beth Lech, CFCM, Chapter Relations MgrDanielle Johnson, Marketing SpecialistTom Smith, Communications Specialist

Communications (4)Eileen Moore, Director

Mary Beth Lech, CFCM, Chapter Relations MgrDanielle Johnson, Marketing SpecialistTom Smith, Communications Specialist

Meetings (2)Jennifer Reece, Director

Rita Rose, Meeting Planner

Meetings (2)Jennifer Reece, Director

Rita Rose, Meeting Planner