Operations Report Neal J. Couture, CPCM Executive Director Board of Directors Meeting Phoenix, AZ March 19, 2011

Action Items from BOD Meetings 1.Develop a communications/marketing plan for the revised mission, vision, and strategic objectives, once approved by the Board. (December 2010) Assigned to: Couture Status: Complete – discussed in Operations Report. 2.Continue the discussion of metrics (measure success for outcomes proposed) for the four proposed strategic objectives. (December 2010) Assigned: Four SPC Subcommittees Status: Ongoing

Action Items from BOD Meetings 3.Address sharing or selling content between/among chapters at either Leadership Summit or a Mid-Year Leadership Conference. (January 2011). Assigned to: Lech Status: Will be addressed at Leadership Summit in August Amend the open letter addressing the need for cooperation between government and industry, to reflect January 2011 Board discussion, for EC approval. (January 2011) Assigned to: Chadwick/Executive Committee Status: Complete

Communications and Marketing Plan for the Revised Mission, Vision, and Strategic Objectives Press release. Website. E-newsletters (7): CM News, ChaptersConnect, StudentsConnect, AdvisorsConnect, FellowsConnect, CareerConnect, VirtualChapterConnect. “This is NCMA” powerpoint presentation. CM magazine. to Chapters. Chapter presentations.

Chief Knowledge Officer - Mr. Alan Boykin Retired Colonel (O-6), USAF Associate Director, Talent Management & Initiatives Office, Human Capital Initiatives, Office of the Under Secretary of Defense, Acquisition, Technology & Logistics; Deputy Chief, Contracting & Acquisition Support, Defense Business Transformation Agency (BTA); Deputy Chief, Contract Policy Division, USAF; Assistant Professor, School of Systems & Logistics, Dept of Contract Management, Air Force Institute of Technology. Master of Science in Strategic Studies, Air War College, Air University, Maxwell AFB AL; Master of Science in Systems Management (Concentration: Human Resources Management), State University of New York (Binghamton) BS in Business Management/Quantitative Science, California State University Fresno.

Finance Favorable YTD variance in net revenue: $500 K over budget Reserves are $2.26 million, which is 34.3% of operating budget ($6.581 million). YTD investment gains: $269K Concerns: conference registration revenue….

Finance Comparison with ASAE benchmarks, for similar sized associations NCMA (YTD 2/2011) ASAE (2008) Profitability17.3%-0.3% Liquidity (Current ratio) Investment Income as a % of Total Revenue 4.9%1.3% UBIT Revenue as a % of Total Revenue 21.5%2.9% Occupancy Expense as a % of Total Revenue 2.5%5.2%

Salaries and benefits as % of revenue ASAE Operating Ratio Report - 13th edition FY12 Budget FY11 EAC FY10FY09FY08 NCMA35.8%31.8%32.3%32.7%30.4% $5m to $10m Average36.3% Median34.0%

Number of employees ASAE Operating Ratio Report - 12th edition FY12 Budget FY11 EAC FY10FY09FY08 NCMA $5m to $10m Average40.4 Median39.0

Revenue per employee ASAE Operating Ratio Report - 13th edition FY12 Budget FY11 EAC FY10FY09FY08 NCMA$262,016$266,237$234,194$227,280$247,355 $5m to $10m Average$233,466 Median$224,029

Financial Report Update Through February 28, 2011 YTD 2011* YTD 2010 YTD BUDGET Revenue Membership 1,343,5411,319,6401,403,328 Education 414,599440,321470,735 Advertising 1,125,9421,120,5401,000,414 Certification 144,20990,38085,725 Meetings 2,166,172729,9141,910,775 Total Revenue 5,205,2203,711,2414,880, % positive variance over budget.

Financial Report Update Through February 28, 2011 YTD 2011* YTD 2010 YTD BUDGET Summary Revenues 5,205,2203,711,2414,880,227 Expenses 4,306,5103,330,6254,481,566 Net from Operations 898,710404,988398, % positive variance from budget in expenses * World Congress timing change

Financial Report Update Through February 28, 2011 YTD 2011* YTD 2010 YTD BUDGET Summary Net from Operations 898,710404,988398,661 Net Investment Revenue 269,875241, Income Taxes 50,000 Net gain (loss) 1,118,585596,222348,941 $769,000 positive variance from budget in net gain year to date! * World Congress timing change

Membership 20,317 members as of 3/1/2011. Up 2.4% from beginning of year. Retention rate: ~80% remains consistent.

Chapter Relations Mid-Year Leadership Conference: –83% rated excellent or very good over all –92% would recommend to their colleagues University of Alabama (Huntsville) Chapter was chartered. Baltimore Washington Corridor chapter was de-chartered. Virtual chapter: 260 members, 130 international

Conferences ADC 2011: 250 attendees, xx below budget. –ADC 2012 in Austin, TX. World Congress 2011 in Denver, Colorado: –3 of 4 keynote speakers secured –120 breakout sessions selected and notified –3 plenary panels being developed by CLO and Chair Leadership Summit 2011: August 11-12, 2011 in Boston. GCMC 2011 scheduled for November at Bethesda Marriott Conference Center. –Negotiating with hotels for 2012 & 2013.

World Congress 2011 – Denver!

Schedule for BOD Members Thursday July 7 12:00pm-6:00pm: Orientation for New Board Directors Friday July 8 9:00am-5:00pm: Board Team Building and Strategic Planning Session Saturday July 9 7:30am–1:00pm: Golf Arrowhead Golf Club 2:00pm-6:00pm: Committee Meetings Sunday July 10 9:00am-3:00pm: Board of Directors Meeting 4:00pm–5:00pm: Conference Opening w/Christopher Dodd, Former Senator from CT 5:00pm–6:30pm: Exhibit Hall Ribbon-Cutting and VIP Reception

Schedule for BOD Members Monday July 11 8:00am–5:15pm: World Congress program 12:30pm-2:30pm: Executive Round Table Luncheon 7:00pm–10:00pm: NCMA World Congress Gala at Mile High Station Tuesday July 12 7:00am-7:30am: General Membership Meeting 8:00am–5:15pm: World Congress program 12:30pm–2:00pm: Executive Advisory Council Luncheon Wednesday July 13 7:00am–12:00pm: NCMA Certification Exams 8:00am–1:30pm: World Congress program 9:00am–9:45am: Awards Presentation

Education Risk factor: Conducted fewer webinars than planned due to topic and speaker selection, workload issues. –Mitigation plan: new CLO hire will significantly contribute in this area.

Certification Transactions and revenues exceed budget year to date. –Applications up 55%; –Certifications awarded up 78%.

Advertising Sales and Creative Services

Standards Standards Committee recommends NCMA agree to be Supporting Organization for the “Values and Guiding Principles of Public Procurement” –“A public sector organization that supports the concept of the collaborative development of guidance for the public procurement profession. The organization agrees to help spread the word and is encouraged to add representation to the Review Team. There is no financial commitment.” Position Standards for the CM Field: to the committee Thursday for review; publish upon approval. CMBOK project: Job analysis report complete, CMBOK 3.0 draft to edit for publishing by WC2011.

Core Operations New CLO hired. Office condo association: roof replacement project. IT Manager Wyatt Miedema returned from Bahrain, back to work end of March.