2017 was a very solid year financially for the KPMA.
The Net Asset balance remains over 100% of annual operating expenses (Note: An average for associations of like size is approximately 64% per the American Society of Association Executives). This Net Asset balance gives KPMA flexibility in times of financial need such as the current initiatives in Frankfort.
MPACT, the Fall Outing and the Tank & Technical Conference were all highly successful and increased significantly in revenues and net income over prior year.
In keeping with the audit committee’s fiduciary duties, an RFP process was performed and KPMA made the transition to Blue & Co. for the 2017 financials. The audit was completed in the 1st quarter of 2018.
Buoyed by several new members and strong retention, overall dues revenue also finished better than budget, prior year and the $200k mark in revenue in very much in reach.
INVESTMENT MANAGEMENT
In 2015 the Finance Committee made the decision to restructure the KPMA investment accounts to move our investments from a discretionary to a non-discretionary option. The change in strategy included a reduction of fees paid by the KPMA to our investment firm, UBS. In 2017 the investment generated almost $15k in dividends and interest as well as $99k in unrealized market appreciation.
2018 BUDGET
The 2018 Budget was reviewed by the finance committee and submitted for Board approval in the December 2017 board meeting.
The Budget once again shows a positive net income.