CSMFO Budget Development

Did you know that CSMFO has an annual budget? Or that it has a standing Administration Committee that functions much like a city council’s finance or audit committee? Since the volunteer leadership is largely made up of passionate government finance professionals just like you, CSMFO was formed to function like one of our government agencies. Also, just like you, we know a thing or two about fiduciary responsibility, and take it just as seriously in our service to CSMFO as we do in our day jobs.

Budget Development and Monitoring

Every year, CSMFO’s Executive Committee, typically led by the President Elect, proposes a budget for the following year at either the September or October Board of Directors meeting. After this initial review, the Board also reviews a ten-year prior budget to actual comparison, which is updated by CSMFO’s Executive Director, Melissa Manchester, as well as by the fiscal staff at SMA (our contract association management company). A budget must then be adopted at the last Board meeting of the year, prior to the start of the new budget year. During the year, the Board would need to approve any new programs that would require financial support.

The annual budget for CSMFO has three parts:

• Conference
• Chapters
• All other operations, which includes classes and trainings.

Once the year has kicked off, the Administration Committee kicks into gear, reviewing monthly budget and financial reports, approving disbursements to ensure compliance with contracts and the budget, as well as keeping a close eye on CSMFO’s reserves. CSMFO’s Policy Manual establishes an operating and conference reserve, both with required minimum balances.

2020 Results and 2021 Early Returns

Just like many of our members’ agencies, CSMFO’s Board prepared its 2021 budget, looking ahead with uncertainty. A reduction in membership of 20% was included in the assumptions, given the fiscal uncertainty of member agencies. Therefore, the budget approved for 2021 was much-reduced from 2020, and included cuts such as the elimination of the annual in-person strategic planning session. Additionally, the Board requested additional monthly financial information and a quarterly dashboard on key performance metrics to be presented monthly.

However, the end of this year’s first quarter revealed two extremely positive outcomes! First, 100% of the current year’s membership revenue budget within the first quarter (90% of 2020’s membership revenue. Second, the 2021 Together Towards Tomorrow virtual conference smashed expectations. Thanks to unexpected cost savings and better-than-expected registration, the conference is projected to produce net revenues of over $160 thousand! Exhibitors and registration alone exceeded the budgeted amounts by $38.0 thousand and $39.3 thousand, respectively.

Considering these strong but early results, the Board will reconsider the 2021 budget reductions at upcoming meetings, with an eye towards slowly returning to safe, in-person events.

In Good Hands

Perhaps it’s not so surprising that such care is taken to ensure our organization’s financial health, considering that the organization is dedicated to the development of government finance professionals, and that professionals just like you are at its reins. CSMFO’s leadership continues to work with dedication to ensure that it is well-positioned to continue its mission of serving all government finance professionals through innovation, collaboration, continuing education and professional development.

With that I’d like to extend an invitation to you to join one of CSMFO’s committees, or become more involved in your local chapter of CSMFO. There are many ways to become involved, no matter what your area of interest. Any member of the Board of Directors or chapter and committee leadership would be happy to talk with you and share our experiences. I hope to talk to you soon!