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Dear AMCA International Member,
The Fiscal 2020-2021 budget as approved by the AMCA Board of Directors is a balanced budget and continues to reflect the Board of Directors' investment in AMCA's strategic plan, staff, and infrastructure. It should be noted that the Fiscal 2020-2021 budget is $64K less than the 2019-2020 forecast, but $348K better than the original 2019-2020 budget.
AMCA's overall 2020-2021 revenues are projected to be 1.4% less than 2019-2020 forecast as it's anticipated that the COVID-19 pandemic will have a substantial impact on the global economy and AMCA's membership, revenues, and expenses.
Because of the impact the COVID-19 pandemic will have on AMCA members, the AMCA Board of Directors was mindful of price increases. As such, the Board approved the following: (1) a 3% increase in laboratory services fees, (2) a 3% increase in laboratory accreditation fees, and (3) a $950 special assessment for AMCA's European members only to support increased advocacy in the region. The special assessment was approved by the European Region Steering Committee at its May 7th meeting.
Dues-and-assessments revenue, which reflects 51% of AMCA's gross revenue, includes a small increase in membership growth, coupled with the change in membership structure eliminating the Joint Membership category.
AMCA's 2020-2021 laboratory-services revenue, including that of Asia AMCA, is expected to be $205K less than the forecast, but $258K greater than the 2019-2020 budget. The Fiscal 2020-2021 budget includes: (1) a 3% price increase, (2) new motor-calibration testing, (3) increased AMCA Standard 250 jet-fan testing, (4) AMCA Standard 230 circulating-fan testing (LDCF), (5) Reynolds number threshold testing, (6) new Energy Star testing and listing, (7) carryover of check-test and contract testing from 2019-2020, and (8) decreased Asia AMCA testing due to COVID-19 losses.
Meeting registration and sponsorship revenue is projected to decline $106K when compared to the 2019-2020 forecast because of reduced meetings due to COVID-19.
AMCA's year-over-year staffing requirements will remain the same. Also, like most companies, AMCA is anticipating an increase in employee health-insurance costs.
AMCA's 2020-2021 meeting expenses are projected to be $253K less than the forecast due to: (1) the reduction of the Annual Meeting from 3 days to 1 day and the changing of the location from Dubai to North America and (2) the conversion of the summer Board meeting from an in-person event to a teleconference. Both of these changes are COVID-19 related.
The 2020-2021 marketing budget includes AMCA's strategic-plan expenditures of developing webinars, training modules, and briefs for advocacy and the Certified Ratings Program.
Reserves next year are projected to increase approximately 4% and have minimal impact on our total reserves of 5.9 months of monthly operating expense, which is within the reserve target range set by the AMCA Board.
Please click here for the fiscal 2020-21 consolidated income statement.
Best regards,
Mark Stevens
Executive Director, AMCA International
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