FY 06 Results (Unaudited) NCMA Finance and Budget Committee Orange County CA 29 July 2006 Mary Beth Lech, CFCM, Fellow NCMA National Vice President and Treasurer

NCMA Proprietary 2 FY 06 Results (Unaudited) FY 06 Actual FY 06 Budget FY 06 EAC (April) Revenues5,039,9075,155,2895,020,626 Expenses4,967,0234,937,9074,951,012 Operating Income72,884217,38269,614 Net Investment Income85,553N/A113,311 Income Taxes108,00050,000105,000 Net Gain50,437167,38177,925

NCMA Proprietary 3 Comments on Actual,Budget and EAC Actual revenues show a shortfall against budget of $115,383 or 2.24% Actual expenses exceed budget by $29,116 or 0.59% No material variances between the EAC prepared in April (based on March YTD Actual and estimates for the final quarter)

NCMA Proprietary 4 FY 06 Budget Assumptions Prepared in March 2005 – assuming relocation in FY 06 No changes in cost structure resulting from move included in budget Once move finalized it was anticipated a revised budget would be prepared incorporating revised cost structure – particularly additional staff Move deferred – but need for additional staff to meet strategic objectives remained. Additional staff recruited leading to adverse variance

NCMA Proprietary 5 Actual/Budget Variances Revenues: Lower than budgeted Meetings revenues (WC, ADC and CCC) Education – lower Audio Seminar and NES revenues Communications – lower CM Magazine advertising These shortfalls are partially offset by: Education – higher book sales and Learning Center revenues Communications – Higher CMJobs.com and website revenues

NCMA Proprietary 6 Actual/Budget Variances Expenses: Adverse Variances Salaries and Benefits – see earlier slide Administration – Computer, Travel, Professional Development and Recruitment costs Finance – Bank charges – greater volume of credit card transactions – particularly for WC Education – NES – editorial costs, Books – higher variable costs and inventory write down Communications – Temporary staff, Salary Survey Meetings – CCC –higher speaker costs

NCMA Proprietary 7 Actual/Budget Variances Adverse variance on Expenses partially offset by: Governance – lower BOD and Strategic Planning costs Marketing – Deferred Membership and Certification campaigns Membership – no long term temporary Chapter Relations – chapter rebate forfeiture credit, lower printing certificate and awards costs Education – No Learning Center maintenance costs and lower variable Audio Seminar costs Communications – deferral to FY 07 of Board of Advisors Directory, lower production/distribution costs of Buyers Guide and lower third party web costs Certification – Deferred exam development, Workshop, Board and Accreditation costs Meetings – Lower variable costs at WC, ADC and CCC