Proposed Budget

For the Year endingDecember 31, 2011

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AGENDA

Review of 2010 financials & milestones

Presentation of 2011 budgetHighlights of new activitiesPotential opportunitiesContingent Requests

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CMAA Mission StatementThe 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.

Primary ActivitiesThe 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; andPromotion and advocacy for the industry

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

% of Annual Operating Expenses

0.6% 4.9% 8.5%

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

2010 MilestonesRecord breaking year

6,434 Members More than 1,000 attendees at National ConferenceAlmost 280 certification applications processed229 new CCMs (as of November 30, 2010)

New programs and benefitsSustainability Guideline publishedLaunch of CMpatTM Assessment ToolRepurposed Spring Conference into Owners ForumSolid Progress with Alliance between CMAA & CIIIntroduction of the Live Learning Center

Membership

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

2008 2009 2010Membership Dues 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%

% Change in # of Members

25.6% 9.4% 7.5%

MembershipOpportunities 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

MembershipNext stepsMembership marketing plan – renew, retain, and recruitFurther engage chapters to help with membership retention

Resources neededSpecific, consistent marketing program focusing on

membershipOverhaul websitePromote CMAA to increase visibility and awareness

Outreach to current and potential membersIncludes targeted membership brochuresAllowance for continued membership contact through email and

small, target mailingsIndustry relations activities – CII, SAME, GSA

Meetings & 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)

2008 2009 2010Revenues Meetings 940,288 806,860 939,159 Marketing & Tradeshows 185,270 207,536 239,699Total Revenues 1,125,558 1,014,396 1,178,858Expenses Meetings 722,869 691,019 864,696 Marketing & Tradeshows 173,830 126,256 141,977Total Expenses 896,699 817,275 1,006,673Net Revenues 228,859 197,121 172,185

Meetings & TradeshowsOpportunitiesOwners Forum with 3 concurrent summits

Tie to membership recruitment effortsIncrease sponsorships through summit model

National Conference to be held in DC High number of federal owners

More members = more potential meeting attendees

ChallengesReduced number of booth spaces available

Less revenues and opportunities for membersMinimal attendee pricing increases past several years to

reflect the added value

Certification

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

2008 2009 2010Certification Revenues 160,330 191,468 224,110Certification 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*

CertificationOpportunities 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

Milestones•Record 10 SOP Courses conducted in 2010•Introduction of CMpatTM in early December, 2010•Record 24 webinars broadcast in 2010

2008 2009 2010Revenues 167,374 284,706 340,531Expenses 399,083 409,604 389,375 Net Revenues (cost) (231,709) (124,898) (48,844)

Other Professional Development Activities

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

RECAPSurvived difficult recessionAll major programs and revenues have been

growingExpenses have been held tightOrganization has continued to grow despite

limited outreach, marketing, or retention efforts

WE HAVE A HUGE OPPORTUNITY!!

2011 Proposed Budget

2011 Budget

2010 Forecast

Variance

Revenues 3,336,269 3,313,841 22,428Expenses 3,285,886 3,184,818 (101,068) Change in Net Assets 50,383 129,023 (78,640)

Beginning Net Assets 271,282 142,259 129,023Ending Net Assets 321,665 271,282 50,383% of Annual Operating Expenses

9.8% 8.5% 1.3%

New Initiatives in 2011Expand New Mega Membership CategoryConduct marketing & advertising campaign – Budget of $57,000Develop and produce 4 new SOP modules – total investment

$40,000, 2011 expense $13,000Overhaul Association website – total investment $30,000, 2011

expense $10,000Purchase and implement certification management system – total

investment of $30,000, 2011 expense $10,000Support International Committee request of $10,000Carry out expanded industry relations activities – Cost of $6,500Carry out leadership training for chapter presidents – new

expense of $5,000Provide free webinar seriesBring all accounting functions in house – annual savings $70,000

Membership

2011 Budget

2010 Forecast

Variance

Mega Members 225,000 - 225,000Service Providers 1,000,830 1,153,297 (152,467)Owners 147,810 125,353 22,457Academic 28,989 24,937 4,052Other Memberships 84,306 83,999 307 Total Memberships 1,486,935 1,387,585 99,350

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

MembershipOpportunitiesCome Back Campaign

Sent to 443 former service provider membersTotal revenue potential $200,000

Recruit new Mega Member companiesEach new company generates $25,000 in new duesCurrently being sold by professional association business

development consultantRecruit 10 new water/transportation related owner

organizationsFocus of Owners Forum SummitsEach new owner would be $1,200 or $12,000 for 10 (at

small owner rate)

Membership Expenses

2011 Budget

2010 Forecast

Variance

Membership Service 145,300 143,173 (2,127)

Key assumptions• Continued use of business development consultant

for first half of 2011• Reduce database vendor costs

Meetings & Conferences

2011 Budget

2010 Forecast

Variance

Revenues 997,535 939,159 58,376Expenses 876,181 864,696 (11,485) Net Revenues 121,354 74,463 46,891

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

Marketing & Tradeshows

2011 Budget

2010 Forecast

Variance

Revenues 203,400 239,699 (36,299)Expenses 193,893 148,102 (45,791) Net Revenues 9,507 91,597 (82,090)

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

Certification

2011 Budget

2010 Forecast

Variance

Revenues 236,750 224,111 12,639Expenses 215,427 181,653 (33,773) Net Revenues 21,323 42,458 (21,135)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 $10,000Opportunities• Increase application fees by $20 each = $6,000• 10% increase in the number of applications = $8,850

Other Professional Development2011

Budget2010

ForecastVariance

Revenues 238,149 340,531 (102,382)Expenses 410,934 389,375 (21,558) Net Revenues* (172,785)* (48,844) (123,941)**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• CMpatTM 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

Other Professional Development

Opportunities18 chapters not currently planning to host

SOP CourseMinimum 8 attendees would net $1,400 after

revenue sharing Participating chapter also gets $1,400

10 additional chapters SOP Courses yields $14,000

Publications

2011 Budget

2010 Forecast

Variance

Revenues 150,000 151,371 (1,371)Expenses 69,300 66,774 (2,527) Net Revenues 80,700 84,597 (3,897)

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

Chapters

2011 Budget

2010 Forecast

Variance

Expenses 76,062 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 $4,000Opportunity• Revamp revenue sharing formula and distribution

model• Need to limit risk with new Mega Member category

Leadership & Governance

2011 Budget

2010 Forecast

Variance

Expenses 86,500 92,357 5,857

Key Assumptions• Expenses consistent year over year• Transfer some smaller expenses to marketing

General & Admin

2011 Budget

2010 Forecast

Variance

Expenses 1,202,290 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

Other Revenues

2011 Budget

2010 Forecast

Variance

Career Headquarters 21,000 21,482 (482)Chapter Revenues 0 2,758 (2,758)Governance & Leadership 0 4,724 (4,724)Other Revenues 2,500 2,421 79 Total Other Revenues 23,500 31,385 (7,885)

Key Assumptions• Revenues will be flat on Career Headquarters, Other

Revenues • Reimbursements in Chapters and Governance offset

directly against expenses in 2011

Financial Impact

Activity 2011 ImpactMarketing & Advertising Campaign 57,000New SOP Modules 13,000Overhaul Website 10,000Certification Management System 10,000International Committee Funding 10,000Industry Relations Activities 6,500Chapter Leadership Training 5,000Reduction in Available Tradeshow Space

30,000

Bring all Accounting In-house (70,000) Net Impact in 2011 71,500

2011 Proposed Budget Recap2011

Budget2010

ForecastVariance

RevenuesMembership Dues 1,486,935 1,387,585 99,350Meetings & Conferences 997,535 939,159 58,376Marketing & Tradeshows

203,400 239,699 (36,299)

Certifications 236,750 224,111 12,639PD 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

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

2011 Proposed Budget Recap (cont)

2011 Budget

2010 Forecast

Variance

Revenues 3,336,269 3,313,841 22,428Expenses 3,285,886 3,184,818 (101,068) Change in Net Assets 50,383 129,023 (78,640)

Beginning Net Assets 271,282 142,259 129,023Ending Net Assets 321,665 271,282 50,383% of Annual Operating Expenses

9.7% 8.5% 1.2%

• Focus on increasing revenues• Opportunities to improve bottom line

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ContingencyRequest to Add 2 New Program Expenses

Requires CMAA management to increase revenues above budgeted level Continue to provide regular forecasts throughout

2011Request to use 50% of additional revenues for:

Additional administrative staff position Continue marketing & advertising campaign

Incentive to find creative solutionsEnsure Increase Net Assets

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ActionMotion to approve the budget