Treasurer’s Report 2022

Published: December 14, 2022

Deborah Hampton

Deborah Hampton The Chemours Company FC, LLC Wilmington, Delaware, USA Board of Directors

As I end my term as Treasurer, I am pleased to report that although 2022 has been a very challenging year, our Association continues to be in sound financial standing.

For the prior twelve months ending August 31, 2022, assets and liabilities were $25,124,792. The change in assets during the twelve-month fiscal period is primarily due to the reduction in our Reserve Fund balance resulting from market volatility and liquidations required to fund operating expenses. The change in liabilities during this period is due to a reduction in our Line of Credit balance as we continue to pay down our outstanding balance as well as a reduction in cumulative net earnings.

Revenues, both restricted and unrestricted, for the same twelve-month period were $19,091,276 and Expense for the same period were $20,218,003.

Concerning memberships, the number of memberships at the end of the fiscal period was 5,991 and at the end of the prior twelve-month period 5,896, an increase of 95 members.

INTA member names and address information is retained in the Association Management System.

The 2022 budget, adopted by the Board of Directors last November, which projected a net loss (total revenue minus total expenses) of $0.8 million, unfortunately, will not be achieved. The primary variance was the results from the 2022 Washington, D.C., Annual Meeting which was budgeted to generate Net Revenue of $4.0 million but fell short of achieving budget by $1.5 million. Attendance for the virtual component of the Annual Meeting was significantly lower than expected with 450 participants attending versus a budget of 2,890.

The projected revenue shortfall for the Annual Meeting and other revenue streams has created liquidity constraints for the Association. As a result, cash management has been a top priority for the Finance Committee in 2022. $3.5 million has been liquidated from our Reserve Fund during the first ten months of the year and has been used to fund ongoing operating expenses. Our Reserve Fund, which at the beginning of 2022 had a balance of $23.7 million, now has a balance of $16.2 million. The access to liquidity generated by the sale of investments from the Reserve Fund is exactly the reason why the Reserve Fund was created several years ago.

We maintained an overall 86 percent membership retention rate in 2022, added 929 new members, and continue to have close to 6,000 members around the world. Our 2022 Membership Dues of $6.5 million continues to be a significant source of revenue for the Association.

Our Association’s staff continued to demonstrate their ability to manage operating expenses during 2022. Total expense for the Association forecasted to be $20.0 million will be lower than the original budget by close to $700,000.

New revenue streams continue to be a focus for the Association staff and as you will hear during today’s budget presentation. These new revenue streams will begin to make a significant contribution to the Association’s total revenue budget in 2023.

The 2023 budget which will be presented to the Board of Directors today will reflect membership retention of 86 percent, which is consistent with recent prior years’ results. Four budget scenarios for the Annual Meeting will be presented to the Board each reflecting various registrant scenarios, including a virtual offering and an option for package pricing.

We continue to invest in the Association regarding legal resources and public policy and advocacy. INTA’s representative offices’ staff total 10 estimated expenses of approximately $2.0 million.  Staff in Europe, Latin America, China, and Asia Pacific continue their advocacy, membership development, and communications. Our Washington, D.C., office will continue to enhance our presence and effectiveness in Washington, with the support of staff supplemented by expert lobbying and consulting support. We continue to be well served by our consultants in Delhi and the Africa Middle East regions. Underlying all these activities is the dedication to grow our membership base globally, and consistently enhance our member benefits.

2023 will prove to be a very exciting yet challenging time and an important year for INTA as we continue with the uncertainty of the impact of Covid-19 and with the possibility of a global recession. As Treasurer, it has been an honor to work with the officers, committee members, the general membership, the staff, especially the staff and the Chief Executive Officer, and I am confident in the continuing progress and growth of our Association.

Although every effort has been made to verify the accuracy of this article, readers are urged to check independently on matters of specific concern or interest. 

© 2022 International Trademark Association