Management’s
Discussion and Analysis

Institute of Management Accountants, Inc.
and Affiliates Combined Financial Statements

Years Ended June 30, 2013 and 2012

(All dollar amounts are in thousands)

The Association

The Institute of Management Accountants, Inc., and its subsidiaries and affiliates (collectively, IMA), provides a forum for research, practice development, education, knowledge sharing, and advocacy to a network of more than 68,000 professionals. 


Summary

The combined financial statements include the accounts of the Institute of Management Accountants, Inc. and its subsidiaries, IMA Services, Inc. and IMA Products and Services, LLC, as well as its affiliates, Institute of Certified Management Accountants, Inc., Institute of Management Accountants Memorial Education Fund, Inc. and Institute of Management Accountants Research Foundation, Inc.

Highlights of the combined financial results for the years ended June 30, 2013 and 2012 are:

($ amounts in thousands)

2013

2012

Revenue from operations

$22,881

$21,135

Operating expenses

22,776

21,096

Results of operations

105

39

Investment income

1,461

466

Change in unfunded accumulated
  benefit obligation

39

(66)

Change in net assets

$1,605

$439

Total assets on a combined basis were $24,253 in Fiscal 2013 compared to $21,976 at the end of Fiscal 2012. Cash increased $1,321 to $6,130 in Fiscal 2013 from $4,809 in Fiscal 2012. The investment portfolio, including portfolio amounts held in cash and reported in cash above, increased by $1,416 to $14,571 in Fiscal 2013 from $13,155 at the end of Fiscal 2012. The value of fixed assets was $3,232 at the end of Fiscal 2013, compared to $3,868 at the end of Fiscal 2012.

Total liabilities on a combined basis were $10,766 in Fiscal 2013 compared to $10,094 at the end of Fiscal 2012. The increase in liabilities is mainly due to membership growth, which increased deferred dues to be amortized over the period of membership benefits, as well as growth in staffing and staff related accruals.


Program Revenues

Program revenues increased $1,746 or 8% to $22,881 in Fiscal 2013 from $21,135 in Fiscal 2012. CMA exam related revenue increased $866 or 12% to $8,226 in Fiscal 2013 compared to $7,360 in Fiscal 2012. The number of active and new CMAs, people entering the CMA program, CMA exam registrations, and related entrance fees, exam fees, and maintenance fees, all increased over the prior fiscal year. Membership dues revenue increased $655, or 7%, to $9,859 for the period as a result of a modest rate increase and a 5% increase in the number of members served by the association. Affinity revenue increased by $565 or 58%, from $974 in Fiscal 2012 to $1,539 in Fiscal 2013, primarily due to recognition of deferred affinity revenue at the conclusion of a significant contract.


Operating Expenses

Total operating expenses increased by $1,680 or 8% to $22,776 in Fiscal 2013 from $21,096 in Fiscal 2012. Expenses charged directly to programs increased by $527 or 6%, primarily as a result of growth in the CMA program. Shared program expenses increased $644 or 11% as a result of enhanced membership and certification promotional efforts and international expansion. Administrative support expenses increased by $509 or 9%, as a result of global growth and a change in the asset capitalization threshold.


Investment Return

Investment income totaled $1,461 in Fiscal 2013, compared to $466 in Fiscal 2012. The improvement in the value of the investment portfolio reflects a general improvement in the market for the underlying securities.

Institute of Management Accountants, Inc. (IMA)


IMA's Current Operating Fund

The Current Operating Fund concluded Fiscal 2013 with a balance of $812, compared to a deficit balance of $428 at the end of Fiscal 2012, following an operating results surplus of $1,156, which included a $1,000 contribution from ICMA, COSO joint venture investment income of $45 and a $39 increase in the unfunded accumulated benefit obligation.


IMA's Reserve Fund

The Reserve Fund concluded Fiscal 2013 with a balance of $4,402, compared to a balance of $3,582 at the end of Fiscal 2012.  Registration fees for new members are credited to the Reserve Fund, and totaled $203 in Fiscal 2013, as compared to $180 in Fiscal 2012.  Investment returns credited to the Reserve Fund were $617 in Fiscal 2013. 


Institute of Certified Management Accountants, Inc. (ICMA)

ICMA is the affiliated entity that administers the Certified Management Accountant credentialing program. The net assets of ICMA decreased by $604 as a net result of $1,130 operating deficit, which included a $1,000 contribution to IMA, and investment portfolio gains of $526 during Fiscal 2013. As of June 30, 2013, the net assets of ICMA were $5,490, as compared to $6,094 in June of 2012. 


Institute of Management Accountants Memorial Education Fund, Inc. (IMAMEF)

IMAMEF consists of various funds established to support the educational goals of IMA, to further its ethics program, and to award scholarships to students pursuing an education in management accounting. Scholarships and grants awarded by IMAMEF for Fiscal 2013 and 2012 were $20 and $9 respectively. Investment gains credited to IMAMEF were $276 in Fiscal 2013, compared to $86 in Fiscal 2012. The net assets of IMAMEF at the end of Fiscal 2013 and 2012 were $2,705 and $2,491 respectively.


Institute of Management Accountants Research Foundation, Inc. (IMARF)

Grants awarded to doctoral candidates pursuing research related to management accounting and to organizations furthering accounting education were $63 and $97 in Fiscal 2013 and 2012 respectively. IMARF had net assets of $78 at the end of Fiscal 2013 as compared to net assets of $143 at the end of Fiscal 2012. In Fiscal 2012, IMARF received a contribution of $240 from IMAMEF which covered or will cover the majority of its expenditures for Fiscal 2012, Fiscal 2013, and Fiscal 2014.

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