The Finance and Audit Committee reports that as of December 31, 2018, ACNM’s financial picture continues on the road to improvement. The 2018 budget projected a loss of $116K in operations. With the investment portfolio performance included, ACNM 2018 was anticipated to finish slightly in the positive at $14K. As ACNM continued its realignment of national office staff with a keen a focus on rebuilding both the Finance Department and improving financial practices, unbudgeted expenses were incurred when consultants were employed to assist with a long overdue realignment of our financial infrastructure. These unbudgeted expenses resulted in ACNM finishing the 2018 fiscal year with a net operating deficit of $257K. The expenses coupled with the downturn of the financial markets in the fourth quarter of 2018, resulted in ACNM ending the year with a loss of $343K. Investment in our financial operations came at a cost, but was a critical strategy for hiring qualified finance staff (see sidebar below) and putting a plan in place for long-term improvements.
Revenue Drivers Leading the Way
In FY2018, overall revenue exceed budget by $224K with the ACNM revenue drivers of membership dues and the annual meeting leading the way. Membership revenue finished ahead of budget by $18K and annual meeting revenue finished ahead of budget by $259K. As mentioned above, ACNM had some unbudgeted expenses in the consulting area addressing financial operations, which was the lead contributor to being over budget on the expense side.
Fiscal year 2019 is anticipated to be a more stable year for ACNM as we put the final improvements in place to help drive revenue and increase efficiency in areas such as monthly financial reports to the Finance and Audit Committee and monthly financial performance reviews with staff departments.
This year, ACNM is budgeted to finish slightly in the net positive at $7K. ACNM has implemented a new business practice that creates direct alignment between its 2019 strategic work priorities, the 2019 budget, and staff performance goals to enable important facets of the organization to work towards the same goal. Through this business practice, ACNM will be better positioned and more proactive in addressing priority and budget performance issues that may arise during the fiscal year.
The ACNM Finance Team is led by Marc Rucker, vice president of finance. Marc was raised in Boston, Massachusetts, where he worked in the banking industry for 15 years. He earned an MBA from George Mason University and degrees in Finance and Accounting from Bentley University. He has spent the past 8 years working in the nonprofit sector leading the finance and operations departments of several organizations.
Lisa Zeng joined ACNM in October 2018 in the position of financial controller. Her professional background includes a CPA/MBA and 15 years of hands-on experience in financial reporting, financial analysis, monthly close, and internal control.
Sue Chavan, senior accountant, has been with ACNM for 9 years. Previously she worked as an accountant for law firsm, CPA, firms and nonprofit organizations, including Catholic Chartities-DC. Sue is originally from Mumbai and came to the United States in 1990.
By Marc Rucker, MBA