FPA budget recovers after 2011 restructure
The Financial Planning Association (FPA) is no longer reliant on event revenue and sponsorship dollars to meet its funding requirements and seems to be well on track to replenishing its reserves after the 2011 restructure.
The 2011 restructure saw the FPA remove its principal sponsorship and launch a multi-million dollar advertising campaign, after which the association reported a budget deficit of more than half a million dollars, predicting the deficit would linger for two more years.
However, last year's report showed the association had emerged into the black two years ahead of the plan and recorded a slight budget surplus, which it mostly attributed to a 65 per cent increase in Certified Financial Planner (CFP) certification program enrolments.
The FPA now has a budget surplus of $1.4 million — a result that was achieved on the back of prudent expense management and a record increase in membership across all categories, according to chief executive officer Mark Rantall.
The annual report for 2012/13, to be released later this month, also shows an increase in net assets to $7.3 million, while liquid assets stood at $15 million.
Rantall said the 2012/13 surplus would replenish reserves drawn upon during the 2011 restructure, and invest in a new information system platform which would aim to improve member communications, knowledge sharing and engagement.
"Our sustainability is built on membership revenue exceeding operating costs and funding investment without the need for sponsorship or event revenue," Rantall said.
"The FPA is no longer reliant on sponsorship monies or an annual conference to meet its operating or funding requirements."
The association will hold its inaugural Professionals Congress in Sydney on October 17 and 18.
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