Proposed Budget
For the Year ending
December 31, 2011
1
AGENDA
 Review of 2010 financials &
milestones
 Presentation of 2011 budget
 Highlights of new activities
 Potential opportunities
 Contingent Requests
2
CMAA Mission Statement
The Mission of CMAA is to promote and enhance
leadership, professionalism, and excellence in
managing the development and construction of
projects and programs.
The Vision of CMAA is to be the recognized authority
in managing the development and construction of
projects and programs.
3
Primary Activities
 The mission of CMAA is achieved through –
 Accredited certification program designating
Construction Managers as meeting or exceeding
professional standards and best practices;
 Professional education in a variety of areas critical to the
success and promotion of the Construction Management
industry and profession;
 Innovative tools and assessments to keep abreast of the
changing skills and roles of Construction Managers;
 Publications to convey value of the profession;
 Creation and maintenance of Body of Knowledge; and
 Promotion and advocacy for the industry
4
CMAA
Historical Statement of Activities
For the Year Ending December 31,
2008
2009
2010
Revenues
3,045,962
3,051,938
3,313,841
Expenses
3,154,445
2,927,833
3,184,817
Change in Net Assets
(108,484)
124,105
129,023
Beginning Balance Unrestricted Net
Assets
127,122
18,638
142,743
Ending Unrestricted Net Assets
18,638
142,743
271,766
0.6%
4.9%
8.5%
% of Annual Operating Expenses
 Overall, revenues have increased steadily year-over-year
 2008 was very challenging – 2009 & 2010 focus on tight expense control
 Maintain commitment to overall strategic mission
5
2010 Milestones
 Record breaking year
 6,434 Members
 More than 1,000 attendees at National Conference
 Almost 280 certification applications processed
 229 new CCMs (as of November 30, 2010)
 New programs and benefits
 Sustainability Guideline published
 Launch of CMpat Assessment Tool
 Repurposed Spring Conference into Owners Forum
 Solid Progress with Alliance between CMAA & CII
 Introduction of the Live Learning Center
TM
6
Membership
2008
Membership Dues
2009
2010
1,356,230
1,377,532
1,387,586
# of Members
5,470
5,983
6,434
% Change in Revenues
7.5%
1.6%
0.7%
25.6%
9.4%
7.5%
% Change in # of Members
Milestones
• Membership of 6,434
• 27 regional chapters and 26 student chapters
• Board approved Mega Member category offering unlimited
employee memberships and significant professional
development benefits
7
Membership
Opportunities
 New Mega Member category
 New insurance program for small and mid-size service providers
 More members = more opportunities for certification, meetings, and
professional development
Challenges
 While the number of members has increased by 60% over past 4 years, dues
revenues have only increased by 10%
 Declining retention in key areas such as owners and service providers
 Number of student members increasing each year, minimal revenue impact
 No specific membership marketing plan
 ANSI imposed limitations on soliciting certification candidates for CMAA
membership
 How can we leverage what we have within the boundaries?
 Continued mergers and acquisitions among members
 No membership dues increase since 2000
8
Membership
Next steps
 Membership marketing plan – renew, retain, and recruit
 Further engage chapters to help with membership retention
Resources needed
 Specific, consistent marketing program focusing on membership
 Overhaul website
 Promote CMAA to increase visibility and awareness
 Outreach to current and potential members
 Includes targeted membership brochures
 Allowance for continued membership contact through email and
small, target mailings
 Industry relations activities – CII, SAME, GSA
9
Meetings & Tradeshows
2008
2009
2010
Revenues
Meetings
940,288
806,860
939,159
185,270
207,536
239,699
1,125,558
1,014,396
1,178,858
722,869
691,019
864,696
173,830
126,256
141,977
Total Expenses
896,699
817,275
1,006,673
Net Revenues
228,859
197,121
172,185
Marketing & Tradeshows
Total Revenues
Expenses
Meetings
Marketing & Tradeshows
Milestones
•Record attendance at National Conference with more than 1,000 attendees
•Successful Rebranding of Spring event into Owners Forum
•High quality educational programming
•Positive overall attendee experience – excitement (buzz)
10
Meetings & Tradeshows
Opportunities
 Owners Forum with 3 concurrent summits
 Tie to membership recruitment efforts
 Increase sponsorships through summit model
 National Conference to be held in DC
 High number of federal owners
 More members = more potential meeting attendees
Challenges
 Reduced number of booth spaces available
 Less revenues and opportunities for members
 Minimal attendee pricing increases past several years to reflect the
added value
11
Certification
2008
2009
2010
Certification Revenues
160,330
191,468
224,110
Certification Expenses
226,162
150,186
181,653
Net Revenues (cost)
(65,832)
41,282
42,457
Applications Processed
145
236
280*
Individuals Certified
135
105
232*
Milestones
•50% growth in applications processed from 2007 – 2010
•67% growth in the number of individuals certified from 2007 – 2010
*Total through 11/30/10
12
Certification
Opportunities
 Substantial interest in webinars on becoming a CCM and the application
process
 Potential new Mega Member anticipates sending 85 individuals through the
certification process in 2011
 VDOT committed to sending an additional 20 individuals through the
certification process
 GSA intends to require 300 senior project managers to obtain CCM credential
in the next 2 years
 More members = more potential certification candidates
Challenges
 Manual intensive process to review and approve certification applications
 Manual approach to recertify individuals, leading to lower renewal rates
Next Steps
 Select and acquire certification specific management system to automate
certification process
13
Other Professional Development
Activities
2008
2009
2010
Revenues
167,374
284,706
340,531
Expenses
399,083
409,604
389,375
(231,709)
(124,898)
(48,844)
Net Revenues (cost)
Milestones
•Record 10 SOP Courses conducted in 2010
•Introduction of CMpat in early December, 2010
•Record 24 webinars broadcast in 2010
TM
14
Other Professional
Development Activities
Opportunities
 SOP courses delivered easily with chapter involvement
 Increased interest from owners in training and preparation for CCM
 More members = more potential professional development participants
Challenges
 Hard to anticipate needs of new individuals joining with Mega Membership
program
 Free webinars eliminates a current revenue source for the organization
Next Steps
 Develop and produce an additional 4 modules needed for the online SOP
training program
 Review Body of Knowledge
 Monitor popularity and expense of free webinars
Resources Needed
 Cost to develop and produce new SOP modules
15
RECAP
 Survived difficult recession
 All major programs and revenues have been growing
 Expenses have been held tight
 Organization has continued to grow despite limited
outreach, marketing, or retention efforts
WE HAVE A HUGE
OPPORTUNITY!!
16
2011 Proposed Budget
2011 Budget
2010 Forecast
Variance
Revenues
3,336,269
3,313,841
22,428
Expenses
3,285,886
3,184,818
(101,068)
50,383
129,023
(78,640)
Beginning Net Assets
271,282
142,259
129,023
Ending Net Assets
321,665
271,282
50,383
9.8%
8.5%
1.3%
Change in Net Assets
% of Annual Operating
Expenses
17
New Initiatives in 2011
 Expand New Mega Membership Category
 Conduct marketing & advertising campaign – Budget of $57,000
 Develop and produce 4 new SOP modules – total investment







$40,000, 2011 expense $13,000
Overhaul Association website – total investment $30,000, 2011
expense $10,000
Purchase and implement certification management system – total
investment of $30,000, 2011 expense $10,000
Support International Committee request of $10,000
Carry out expanded industry relations activities – Cost of $6,500
Carry out leadership training for chapter presidents – new expense
of $5,000
Provide free webinar series
Bring all accounting functions in house – annual savings $70,000
18
Membership
2011 Budget
Mega Members
2010 Forecast
Variance
225,000
-
225,000
1,000,830
1,153,297
(152,467)
Owners
147,810
125,353
22,457
Academic
28,989
24,937
4,052
Other Memberships
84,306
83,999
307
Total Memberships
1,486,935
1,387,585
99,350
Service Providers
Key Assumptions
• 8 Large corporate members have upgraded to Mega Membership category
• ARCADIS, Heery Intl, Hill International, Jacobs, Parsons, PB, Shaw Group, URS
• 1 New Mega Member budgeted in 2011
• Focus on retaining members in owner and service provider categories
• Anticipate continued loss at a decreasing rate of individual memberships
19
Membership
Opportunities
 Come Back Campaign
 Sent to 443 former service provider members
 Total revenue potential $200,000
 Recruit new Mega Member companies
 Each new company generates $25,000 in new dues
 Currently being sold by professional association business
development consultant
 Recruit 10 new water/transportation related owner
organizations
 Focus of Owners Forum Summits
 Each new owner would be $1,200 or $12,000 for 10 (at small
owner rate)
20
Membership Expenses
2011 Budget
Membership Service
145,300
2010 Forecast
Variance
143,173
(2,127)
Key assumptions
• Continued use of business development consultant for first half
of 2011
• Reduce database vendor costs
21
Meetings & Conferences
2011 Budget
2010 Forecast
Variance
Revenues
997,535
939,159
58,376
Expenses
876,181
864,696
(11,485)
121,354
74,463
46,891
Net Revenues
Key Assumptions
• Owners Forum
• New Sponsorship model changed yielding an increase of $15,000
• Attendance boost to 330
• National Conference
• Attendance budgeted at 870 attendees
• Sponsorships maintain 2010 levels
Opportunities
• Increase National Conference attendee registration fees
• Increase Owners Forum registration fees
• Additional leadership sponsorship for Owners Forum
22
Marketing & Tradeshows
2011 Budget
2010 Forecast
Variance
Revenues
203,400
239,699
(36,299)
Expenses
193,893
148,102
(45,791)
9,507
91,597
(82,090)
Net Revenues
Key Assumptions
• Tradeshow space limited to 69 booths
• Budget assumes continued sell out of the space
• Renewed organizational marketing and advertising campaign
implemented at a cost of $57,000
• Overhaul website
• Total investment $30,000
• 2011 depreciation expense $10,000
23
Certification
2011 Budget
2010 Forecast
Variance
Revenues
236,750
224,111
12,639
Expenses
215,427
181,653
(33,773)
21,323
42,458
(21,135)
Net Revenues
Key Assumptions
• Budgeted for 300 application fees, 250 exam fees
• Recertification fees for 1,000 CCMs
• Implementation of certification management system
• Total cost $30,000, 2011 depreciation expense $10,000
Opportunities
• Increase application fees by $20 each = $6,000
• 10% increase in the number of applications = $8,850
24
Other Professional Development
2011 Budget
2010 Forecast
Variance
Revenues
238,149
340,531
(102,382)
Expenses
410,934
389,375
(21,558)
(172,785)*
(48,844)
(123,941)*
Net Revenues*
*Includes $80,000 in transferred license revenues from the SOP modules that are now included with Mega Members.
Key Assumptions
• Expand online SOP modules with 4 new modules
• Unlimited Subscription/licensed use with Mega memberships
• CMpat launch in December, 2010 and included in Mega Membership
• Assumes breakeven with $7,500 in additional revenues from
individual purchases
• SOP Courses will include 3 in-house and 9 chapter sponsored
• Twelve webinars provided at no charge to members, overall cost
underwritten by 5 sponsorships at $5,000 each
• Increase travel costs of $6,500 for industry relations activities
TM
25
Other Professional Development
Opportunities
 18 chapters not currently planning to host SOP Course
 Minimum 8 attendees would net $1,400 after revenue
sharing

Participating chapter also gets $1,400
 10 additional chapters SOP Courses yields $14,000
26
Publications
2011 Budget
2010 Forecast
Variance
Revenues
150,000
151,371
(1,371)
Expenses
69,300
66,774
(2,527)
80,700
84,597
(3,897)
Net Revenues
Key Assumptions
• Revenues flat from prior year
• One time implementation costs of $5,000 in 2010
• Credit card fees charged against revenues starting in 2011
27
Chapters
2011 Budget
Expenses
76,062
2010 Forecast
Variance
59,401
(16,661)
Key Assumptions
• Conduct chapter leadership training $5,000 – new in 2011
• Increase in chapter revenue sharing cost based on increase in
number of members $4,000
Opportunity
• Revamp revenue sharing formula and distribution model
• Need to limit risk with new Mega Member category
28
Leadership & Governance
2011 Budget
Expenses
2010 Forecast
86,500
92,357
Variance
5,857
Key Assumptions
• Expenses consistent year over year
• Transfer some smaller expenses to marketing
29
General & Admin
2011 Budget
Expenses
1,202,290
2010 Forecast
Variance
1,239,287
36,997
Key Assumptions
• Bring all accounting functions back in-house
• Yields savings of $70,000
• Total savings compared to 2010 $58,000 (eliminated prior
to year end)
• Modest increases in other areas including rent and general
office expenses
30
Other Revenues
2011 Budget
Career Headquarters
2010 Forecast
Variance
21,000
21,482
(482)
Chapter Revenues
0
2,758
(2,758)
Governance & Leadership
0
4,724
(4,724)
2,500
2,421
79
23,500
31,385
(7,885)
Other Revenues
Total Other Revenues
Key Assumptions
• Revenues will be flat on Career Headquarters, Other Revenues
• Reimbursements in Chapters and Governance offset directly
against expenses in 2011
31
Financial Impact
Activity
2011 Impact
Marketing & Advertising Campaign
57,000
New SOP Modules
13,000
Overhaul Website
10,000
Certification Management System
10,000
International Committee Funding
10,000
Industry Relations Activities
6,500
Chapter Leadership Training
5,000
Reduction in Available Tradeshow Space
Bring all Accounting In-house
Net Impact in 2011
30,000
(70,000)
71,500
32
2011 Proposed Budget Recap
2011 Budget
2010
Forecast
Variance
Revenues
Membership Dues
1,486,935
1,387,585
99,350
Meetings & Conferences
997,535
939,159
58,376
Marketing & Tradeshows
203,400
239,699
(36,299)
Certifications
236,750
224,111
12,639
PD Programs
238,149
340,531
(102,382)
Publications
150,000
151,371
(1,371)
Other Revenues
23,500
31,385
(7,885)
Total Revenues
3,336,269
3,313,841
22,428
• Continued growth in most areas
• Space limitations in tradeshow
• PD lower by including benefits under Mega Membership
33
2011 Proposed Budget Recap (cont)
2011 Budget
2010 Forecast
Variance
Expenses
Membership
145,300
143,173
(2,127)
Meetings & Conferences
876,181
864,696
(11,485)
Marketing & Tradeshows
193,893
148,102
(45,791)
Certifications
215,427
181,653
(33,773)
PD Programs
410,934
389,375
(21,558)
Publications
69,300
66,774
(2,527)
Chapters
76,062
59,401
(16,661)
Governance & Leadership
86,500
92,357
5,857
International Committee Activities
10,000
0
(10,000)
General & Administrative Expenses
1,202,290
1,239,287
36,997
Total Expenses
3,285,886
3,184,818
(101,068)
•
•
•
Primary increases for marketing & advertising campaign
Investments needed in website, SOP modules, and certification management system
Fund International Committee Request for $10,000
34
2011 Proposed Budget Recap (cont)
2011 Budget
2010 Forecast
Variance
Revenues
3,336,269
3,313,841
22,428
Expenses
3,285,886
3,184,818
(101,068)
50,383
129,023
(78,640)
Beginning Net Assets
271,282
142,259
129,023
Ending Net Assets
321,665
271,282
50,383
9.7%
8.5%
1.2%
Change in Net Assets
% of Annual Operating
Expenses
• Focus on increasing revenues
• Opportunities to improve bottom line
35
Contingency
 Request to Add 2 New Program Expenses
 Requires CMAA management to increase revenues above
budgeted level

Continue to provide regular forecasts throughout 2011
 Request to use 50% of additional revenues for:


Additional administrative staff position
Continue marketing & advertising campaign
 Incentive to find creative solutions
 Ensure Increase Net Assets
36
Action
 Motion to approve the budget
37