Advancing Government through Collaboration, Education and Action

2014 BUDGET PRESENTATIONDecember 5, 2013

BUSINESS PROPRIETARY INFORMATION - CONFIDENTIAL

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2014 BUDGET OBJECTIVES2014 ACT-IAC STRATEGIC PRIORITIES

  Make a difference. Provide activities that have real outcomes and contribute to a more effective, efficient and

innovative government.

Provide programs and services that have value for the government community. Be unique.

Implement the ACT-IAC strategic plan.

Increase and broaden government engagement to include (1) program managers and other functional activities and (2) state and local governments and Federal employees outside the Washington, DC region.

Make it easier for government and industry executives to engage in ACT-IAC activities by providing more events in the DC region and opportunities for virtual engagement.

Build bridges to senior executives in government and industry. 

2014 ACT-IAC BUSINESS PRIORITIES 

Enhance the new web site

 Take advantage of the investments in a/v equipment and new office space

Make a decision on the future of the Academy

 Financial stability in 2014 and beyond

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2013 EOY & 2014 BUDGET - OVERVIEW

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2011 2012 2014Year End Year End 2013 EOY Budget

Actual Actual Estimate Request Notes re 2014------------ ------------ ----------- ----------- ----------------------------------

Operating Income $4,223,644 $4,736,280 $4,888,645 $5,797,691 Revenue growth from new events = $600,000Operating Expenses $3,788,215 $4,163,489 $4,398,520 $5,415,300

------------- ------------- ------------- -------------NET OPERATING INCOME $435,429 $572,791 $490,125 $382,391

Unrealized Gain ($17,554) $65,283 $95,000 $0Depreciation $151,930 $150,939 $167,000 $265,600 Increase due to web site, new offi ce & a/v

Other $104,487 $0 $0 $0

New web site $0 $0 $122,000 $0$16,000 is depreciation. Direct expenses now in O&M above

Office move $0 $0 $44,000 $0 $14,000 is depreciation------------- ------------- ------------- -------------

Total Income $4,206,090 $4,801,563 $4,983,645 $5,797,691Total Expenses $4,044,632 $4,314,428 $4,731,520 $5,680,900

------------- ------------- ------------- -------------NET INCOME $161,458 $487,135 $252,125 $116,791

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2014 BUDGET HIGHLIGHTSCONFERENCES, PROGRAMS & FORUMS

• SBC, AE, MOC & ELC will continue– Total net revenue for all 4 events will be less than 2013 net revenue– ELC industry registration raised by $40– Virtual engagement

• 3 new events created in 2014– Networx conference in cooperation with GSA– Virtual engagement for government agencies – training & exhibit– Invitation-only CEO Symposium

• Program events– 10 events & 4 ACT-IAC membership meetings– Priority on creating virtual events using new VTC technologies

• Forums– 6 forums to be held in 2014

• Excellence.gov Awards– Changed to an afternoon event at Arena Stage

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2014 BUDGET HIGHLIGHTSSHARED INTEREST GROUPS

– No new SIGs or working groups– Small Business SIG to be elevated to community of interest– RECOMMENDATIONS: (1) continue to seek government chairs for SIGs; (2) consider creating more functionally-oriented SIGs

PROFESSIONAL DEVELOPMENT– Partners, Voyagers and Associates will continue– Fellows holiday party to cover all direct expenses– RECOMMENDATION: Conduct a strategic review of Fellows. Issues would include: (1) should there be an annual Fellows fee? (2) under what terms and conditions should Fellows who are no longer ACT-IAC members be permitted to participate in Fellows? (3) how effective are the ACT-IAC professional development programs in producing leaders (e.g. how many Fellows are still active in government IT community? How many SES government or C-level industry?)

ACT-IAC ACADEMY– Continue Academy thru June 2013 to assess potential

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2014 BUDGET HIGHLIGHTSMEMBERSHIP & ENGAGEMENT• Government Engagement

– Promote government engagement through more G-to-G activities– ACT Executive Committee to encourage greater engagement– Provide more virtual events to encourage more government participation– 5 ACT-IAC membership meetings

• Industry Membership and Engagement– IAC dues goal = $1,900,000– Greater attention paid to member engagement, small businesses and socio-economic programs (e.g. veteran’s owned, etc.) – Provide more virtual events to encourage industry participation

• Chapters– Provide better support to chapters in San Diego and Denver– Create virtual engagement opportunities– Retain an association mgmt. firm in Denver to support chapter as a pilot

• Senior Executive Outreach– Host at least 4 meetings of Executive Advisory Council– Implement an outreach strategy for senior government and industry executives– Host an invitation-only CEO Symposium

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2014 BUDGET HIGHLIGHTSINSTITUTE FOR INNOVATION

– Address several game-changing issues– Host the first Igniting Innovation awards– Continue to operate on full-cost basis - reimburse ACT-IAC for portion of overhead support

costs

OTHER

– Disestablish the Congressional Education Working Group– Continue to enhance the new ACT-IAC web site– Take advantage of new audiovisual technologies through webcasts and video conferencing– Have more ACT-IAC activities use the new collaboration and education facilities

STAFFING (currently 4 staff vacancies)

– Fill professional development position– Fill meetings position to assist with new events– Fill Member Services Coordinator position to (1) enhance engagement – especially through

virtual activities; (2) support small businesses, veteran-owned businesses, etc. and (3) support chapters.

– Defer filling Academy position until a decision is made regarding the future of the Academy

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2014 OPERATING NET

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2010 2011 2012 2014Year End Year End Year End 2013 EOY Budget

Actual Audited Actual Estimate Request------------ ------------ ------------ ----------- -----------

OPERATING NETACT general ($88,006) ($31,418) ($36,752) ($41,500) ($94,700)IAC general $1,036,182 $1,416,582 $1,601,851 $1,723,675 $1,753,500Executive Leadership Conference$657,986 $856,583 $735,369 $685,000 $665,626Management of Change Conf. $262,428 $256,710 $192,673 $217,500 $154,976Other conferences & events $44,496 ($9,548) $121,795 $100,800 $253,560Golf & tennis charity event $0 $0 $0 $0 $0Professional development $41,713 $5,067 $81,654 $132,500 $101,389Academy ($45,228) ($76,941) ($17,760) ($37,000) $0Program meetings $14,765 $50,873 $48,434 $80,300 $80,000Forums $0 $17,616 $36,646 $56,000 $78,540Shared Interest Groups ($9,339) ($6,710) ($25,874) ($30,000) ($13,000)Institute for Innovation $0 $0 $26,528 $0 $0General administration ($1,985,039) ($2,271,418) ($2,256,535) ($2,411,150) ($2,597,500)Other revenue $25,265 $151,092 $64,762 $14,000 $0

------------- ------------- ------------- ------------- ------------- OPERATING NET $451 $435,429 $572,791 $490,125 $382,391

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SMALL BUSINESS STRATEGY

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SBWG RECOMMENDATION BENEFITS/DESCRIPTION 2014 BUDGET

Full-time small business membership coordinator on staff

Staff support for small business engagement & growth

Member Services Coordinator (MSC) position will spend up to 25% on small business related activities

Small business advocate on IAC Executive Committee

Promote small businesses across all ACT-IAC activities Executive Committee decision

Develop small business membership/welcome kit

Provides targeted benefit and engagement information Included in budget ($2-4K)

Elevate Small Business SIG to a community of interest (CoI)

Provides more effective structure for supporting small businesses Recommended in budget.

Create small business leadership programs and CEO roundtables

New benefits targeted to small businesses ACT-IAC Academy to consider.

Establish small business “buddy” program Helps small businesses become engaged in ACT-IAC

Should be considered by CoI as a potential benefit

Develop training programs for small businesses

New benefits targeted to small businesses ACT-IAC Academy developing training

Host small business forums New benefits targeted to small businesses

Budget includes 6 forums. Two can be focused on small business

Reduce cost of small business participation in ACT-IAC

Reduces cost of entry for small business engagement Not in budget

Implement strategic alliance with SBA Fosters stronger partnership between government, ACT-IAC and small business community

In process

Continue to focus membership activities on companies in government IT community (e.g. no lawyers, bankers or realtors)

Avoids diluting membership activities and resources

Budget assumes continuing focus on companies in government market interested in IT, acquisition, etc.

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PROFESSIONAL STAFF• Approved staff level – 15 FTE; Currently 4 vacancies (meetings, professional development, member services and

Academy) – in 2010 there were 14 FTE

• Workload has increased significantly and will do so again in 2014.– Volunteers have less time and expect more from staff partners. Significantly more staff time is required to retain

members and acquire new ones. – Associates, Institute for Innovation, forums and IACET CEU process were new in 2013. New web site, growth in

technology infrastructure and office move added to workload.– 2014 will see 3 new conferences and 4 additional forums. 15% growth in sponsorship target will result in additional

fulfillment workload.

• Staff has developed a culture of teamwork that has worked effectively as individuals have been assigned to support additional activities.

– Professional development staff absorbed a 30% increase in workload (Associates) despite a full workload. – SIG support has been increased by reducing program support by 25%. Despite this additional effort the primary SIG

position is still overloaded and is being reassessed with the assistance of the EC liaisons.– Of the 11 current employees 6 have accumulated over 200 hours of unused annual leave with 3 accumulating over

300 hours – all hours over 250 hours will be lost on December 31. (Employees are reluctant to take leave as they often feel more stress from thinking about the work that needs to be done. There are not enough staff to provide backups for every position.)

– Each position functions at over 100% of capacity and there is no additional bandwidth.

• The ACT-IAC staff is dedicated and committed to the success of the organization. They are increasingly pushing to meet objectives and are making mistakes that do not reflect well on the ACT-IAC reputation for quality.

• According to non-profit benchmark operating ratios, an organization of ACT-IAC’s size has an average staff size of 24 FTE and generates $211,000 revenue per employee. ACT-IAC has 15 FTE and generates $325,000 per employee.

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MOTIONS

RESOLVED: THE 2014 ACT-IAC BUDGET IS APPROVED AS PRESENTED.

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ADDENDA

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2014 MAJOR CONFERENCES

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2013 2014 2013 2014 2013 2014 2013 2014Actual Budget Actual Budget Actual Budget Estimate Budget--------- --------- --------- --------- --------- --------- --------- ---------

Revenues Registrations $100,500 $121,750 $75,000 $74,875 $308,000 $270,931 $554,000 $685,720 Sponsorships $81,700 $150,000 $76,800 $65,000 $273,500 $290,000 $786,000 $720,000

--------- --------- --------- --------- --------- --------- ------------- --------- Total revenues $182,200 $271,750 $151,800 $139,875 $581,500 $560,931 $1,340,000 $1,405,720

Expenses $106,000 $182,120 $97,200 $108,300 $364,000 $405,955 $655,000 $740,094--------- --------- --------- --------- --------- --------- --------- ---------

Net Income $76,200 $89,630 $54,600 $31,575 $217,500 $154,976 $685,000 $665,626

ELC---------------------- ----------------------

Acq. Ex.----------------------

SBC----------------------

MOC

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ENHANCING THE VALUE OF ACT-IACStrategic Priorities in 2014

• Small Businesses & Socio-Economic Companies – enhance the value of ACT-IAC to small businesses

• Chapters – Create viable chapters in San Diego and Denver & begin serving the national community

• Senior Executives – build bridges to senior government & industry executives & provide value

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2014 MARKETING & PR

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ACTIVITY PURPOSE BUDGET EVENTS

ELC MOC SBC Acquisition Excellence Excellence.gov Networks conference Virtual conference CEO Symposium

Promote government and industry attendance through marketing and press attendance

TOTAL: $105,000 ELC ($20,000) MOC ($20,000) SBC ($12,000) Acquisition Excellence

($20,000) Excellence.gov ($6,000) Networx conference

($12,000) Virtual conference

($12,000) CEO Symposium ($3,000)

IAC Develop engagement and marketing materials $10,000 ACT Develop a marketing brochure $5,000

Chapters Assist Denver and San Diego chapters to develop an outreach and membership strategy $10,000

Institute for Innovation Promote the activities of the Institute and its projects $15,000

Public relations and strategy Respond to press inquiries; secure 2 to 3 media opportunities monthly; promote 1 press release monthly; negotiation of media agreements; PR strategy and administration

$55,000

Total budget investment = $200,000 (SAGE matches) Media agreements generate over $250,000 annually in marketing opportunities Contract to be recompeted beginning June 2014 (CONFIDENTIAL)

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THE VALUE OF ACT-IAC INVESTMENTS

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20142014 2014 Direct 2014 Direct, Staff & 2014

Revenues Expenses Operating Net Indirect Expenses Operating Net----------- ----------- ----------- ----------- -----------

ACT general $81,150 $175,850 ($94,700) $280,326 ($375,026)IAC general $1,900,000 $146,500 $1,753,500 $566,986 $1,186,514Conferences $2,817,981 $1,743,819 $1,074,162 $810,773 $263,389Professional development $370,020 $268,631 $101,389 $179,230 ($77,841)Academy $125,000 $125,000 $0 $56,956 ($56,956)Program meetings $120,000 $40,000 $80,000 $119,544 ($39,544)Forums $183,540 $105,000 $78,540 $84,392 ($5,852)Shared Interest Groups $0 $13,000 ($13,000) $190,127 ($203,127)Institute for Innovation $200,000 $200,000 $0 $38,091 ($38,091)General administration $0 $2,597,500 ($2,597,500) $271,075 ($271,075)

$5,797,691 $5,415,300 $382,391 $382,391