2010 Annual Report: So You May Do Your Best ®
Your National Ground Water Association dues investment is a statement of the trust you have that the responsible use and protection of groundwater are being continually advocated, that all groundwater professionals understand and can leverage their roles and responsibilities in an increasingly global marketplace, and that the industry’s professions are moving forward and will be well-positioned to meet the needs of our rapidly changing global society. NGWA has a solid foundation of products, services, and programs—and we have consistently added new ones to meet the changing needs of our membership.
NGWA and a panel of member volunteers have worked to try to ensure the federal measure: • Is targeted (does not unnecessarily impose requirement on products that do not contain lead), • Provides the necessary time for action and recognizes steps the industry has already taken (such as certification to comparable or even more stringent standards) • Avoids a patchwork of state requirements. Already California, Maryland, and Vermont have passed laws lowering lead content requirements. As Congress debates how to address hydraulic fracturing for oil and gas, NGWA has proactively educated policymakers on the differences between water well hydrofracing and hydraulic fracturing related to gas operations. NGWA member Sean Kyle, representing the Association’s Hydraulic Fracturing Task Force, made presentations to the U.S. Senate committee responsible for oversight of hydraulic fracturing. Kyle briefed Senate committee staff on the differences between oil/gas hydraulic fracturing and water well hydrofracing. To date, language in legislative proposals related to oil and gas production have included the distinctions between the two technologies. EPA invited NGWA, along with environmental groups and others, to participate in an invitation-only Webinar to provide input to the agency’s upcoming study of oil and gas hydraulic fracturing operations. At public hearings around the country, citizens and others have raised concerns about oil and gas hydraulic fracturing and its potential impact on groundwater and private wells. One point in discussion is the question of the quality of private wells prior to and after hydraulic fracturing operations. NGWA has led with a best suggested practice for dealing with stray gas in a water well system, as well as with information for the public and policymakers about water well construction practices, water well professional licensing and qualifications, and good groundwater stewardship. NGWA continues to raise to Congress and to the public the visibility of geothermal heat pumps and their importance to the nation’s energy supply. The Association has also stressed how this technology can help small businesses, such as our members, to diversify and sustain their businesses and their employees’ jobs. The Association collaborated in 2010 with the Ground Water Protection Council, the International Ground Source Heat Pump Association, and the Geothermal Heat Pump Consortium to conduct a survey of state government regulatory oversight of geothermal installations.
You and Your Customers Can Trust that NGWA Advocates for the Responsible Use and Protection of Groundwater
The Centers for Disease Control and Prevention is drafting a report on the health impacts from using residential wellsupplied groundwater. Additionally, CDC is working with health officials and others on a database of available private well water quality. NGWA has provided crucial comments to help appropriately frame this CDC-initiated investigation. The Association has been able to achieve changes that help, in part, to address concerns about the CDC’s database structure and the potential for misuse. Major hurdles remain in trying to pull together disparate information for health studies that may not reflect exposure, the cost and scope of the effort, and concerns by private well owners themselves in data confidentiality. NGWA is participating in the discussions and is actively providing input. The Association’s comments to date have focused on: • The importance of structuring the database to ensure its integrity and quality • Understanding private well owners and minimizing any unintentional disincentives to testing • The value of working through, and with, state and local agencies to build on existing successful programs while helping in those areas where improvements may be needed. Various proposed federal legislative initiatives have proposed a federal standard of not more than a weighted average of 0.25 percent lead of the wetted surfaces of pipes, pipe fittings, plumbing fittings, and fixtures used to convey or dispense water for human consumption. The Association is voicing its support for this action on lead levels to protect consumers, as well as provide a uniform standard that avoids disparate state approaches.
A National Ground Water Monitoring Network will help optimize our groundwater resources by filling in knowledge gaps with declining, stabilizing, or recovering groundwater levels. NGWA has been an industry leader in advocating for such a network. This network is expected to assist private sector groundwater professionals by: • Providing access through a portal to groundwater level and quality information of known and comparable quality across the country • Assisting states in providing a framework for their groundwater monitoring efforts • Allowing them to share data among state programs, e.g., groundwater level and quality data bases • Providing the scientific underpinning to answer questions at the national and regional scale, such as current groundwater levels and how these are changing over time.
• Show federal policymakers and regulators that NGWA is working to protect groundwater through public awareness • Encourage people to visit NGWA’s PYGD Web page and Wellowner.org, and to use NGWA’s Contractor Lookup— driving business to NGWA certified and/or member contractors. The first PYGD was promoted around the nation and the world through more than 100 Web sites, blogs, Facebook pages, and Tweets, in addition to hundreds of conventional news media placements. Fifteen national promotional sponsors alerted their members and followers of PYGD with the goal of mobilizing individuals in the public to take personal action to protect groundwater. The 2010 National Ground Water Awareness Week (March 7-13) proved to be the best yet, with a record number of Affiliate States and outside organizations and individuals partnering with NGWA. In addition to our scholarship program and outreach to schools, the Canon® Envirothon for 2010 was another way for NGWA— as a major sponsor—to encourage capable young people to consider groundwater careers, as well as allowing NGWA to increase public understanding of our groundwater resources. The Canon Envirothon’s—the largest high school environmental education program in North America—learning objectives focused on groundwater in four areas: hydrology and climatology, water quality and quantity, the water/energy nexus, and land use planning. Some 500 students competed in the national finals in Fresno, California.
Other Efforts In addition to the aforementioned issues, consider the breadth of influence NGWA applies as represented by the following: • New OSHA crane and derrick standards reflect the exemption of “dedicated drilling rigs”—an NGWA effort that began six years ago • Written comments to the White House Council on Environmental Quality related to water supply adaptation, including the need for data and use of ASR and other tools • Participation in a review of the U.S. Geological Survey’s proposed Water Census • Meeting with the new EPA assistant administrator for Solid Waste and Emergency Response • Providing a statement to the National Academy of Sciences’ recently formed Superfund Committee • Responding to a U.S. Department of Transportation request for comments regarding fuel efficiency standards for medium- and heavy-duty trucks • Joining in support of the reauthorization of the Diesel Emissions Reduction Act • Presenting to the Environment Committee of the National Conference of State Legislatures • Participating in a Western Governors Association meeting on drought and climate change • Facilitating the Association’s response to a U.S. International Trade Commission hearing on the competitive position of “certain environmental goods” industries in the global market. September 14, 2010
W. Richard Laton, Ph.D., PG, CPG, of California State University, Fullerton, represented the National Ground Water Association at the 2010 Canon Envirothon on August 4 in Fresno, California. Photo courtesy Canon Envirothon U.S.A. Inc.
September 14, 2010
In response to January’s devastating earthquake in Haiti, NGWA advised the news media of NGWA informational resources related to earthquakes and groundwater/wells. Several news services, such as the New York Times, used our information, as did other groups, such as the U.S. Army’s Geospatial Center. The Water Security All Partners Access Network, a community of the U.S. southern hemisphere defense command designed to promote real-time exchange of knowledge, added NGWA to its information services. Beth Pascual, a research scientist with the group, feels that NGWA “possesses a much needed capability for the current crisis [in Haiti] and future recovery efforts.” NGWA’s efforts related to Haiti were among 34 recognized on the 2010 Association Advance America Awards Honor Roll of the American Society of Association Executives, recognition of how associations are social drivers. NGWA public awareness efforts frequently deliver messages of groundwater and well stewardship. Key events hearing these messages in 2010 were the National Association of
September 14, 2010
“Thanks again for all your help. It was worth it. And please keep me notified of any updates in the industry that would affect my readers.” — Michael Fielding, Senior Editor, Public Works September 14, 2010
NGWA’s first annual Protect Your September 14, 2010 Groundwater Day (PYGD) on September 14 furthered water knowledge and protection through education and outreach by bringing the public’s attention to what every individual can do to protect groundwater, the source of our industry’s work. The value proposition for NGWA members was to: • Further groundwater and water well stewardship with the goal of preserving and protecting the resource for beneficial uses, balancing both human and environmental needs
ACCA will prepare for our members a document that communicates what the driller may need to know about the HVAC contractor on a loop well job, and NGWA will prepare a document on what the HVAC contractor should know about the loop well driller. Additionally in 2010, NGWA: • Served on the Project Management Team for a Department of Energy grant to create a national certification standard • Worked with the U.S. Navy’s water well drilling program as it improves its practices • Met with executive officials of the American Water Works Association to explore mutual interests • Provided a presentation on well drilling technologies to members of the International Association of Hydrogeologists gathered for the group’s congress in Krakow, Poland • Shared insights on geothermal heating and cooling opportunities with our industry’s counterparts in Australia • Renewed inter-association cooperation with the National Onsite Wastewater Recycling Association • Renewed our cooperation agreement with the Association of American State Geologists with new provisions for NGWA to assist on a wider range of issues • Shared perspectives with officials of the International Ground Source Heat Pump Association and of the Geothermal Energy Organization • Reported on NGWA activities supportive of the various crosscutting programs of the International Hydrological Programme of UNESCO • Completed work on a contract awarded by the Water Research Foundation, which is affiliated with the American Water Works Association, to develop a 10-year research plan addressing problems with the construction and operation/maintenance of water wells, exclusive of water quality issues • Assisted the Snow and Ice Management Association on a sustainable salt initiative to help mitigate salt leaching into water supplies • Submitted ideas to a coalition of organizations brainstorming about what the water, sanitation, and health sectors should do for World Water Day in 2011 (per members of the NGWA Developing Nations Interest Group) • Developed a mutual information exchange with the Air Conditioning Contractors Association of America regarding geothermal heat pumps • Opened exploratory discussions with the Association of Boards of Certification, a consortium of almost 100 certifying authorities representing more than 40 states and nine Canadian provinces, as well as several international programs; these programs certify more than 150,000 water and wastewater operators, laboratory analysts, plant maintenance technologists, biosolids land appliers, and backflow prevention assembly testers • Collaborated in conferences with the Ground Water Protection Council, the Midwest Groundwater Conference, the International Ground Source Heat Pump Association, and the Water Management Association of Ohio • Provided research questions related to geothermal heat pump systems and groundwater protection to the National Renewable Energy Laboratory of the U.S. Department of Energy • Provided member review of Swiss-based Rural Water Supply Network’s Generic Code of Practice for Cost-Effective Boreholes, a document that aims to raise the level of professionalism within rural water supply programs that include water wells
Local Boards of Health Conference and the Midwest Groundwater Conference. NGWA also hosted a free Webinar on groundwater and water well stewardship for private, domestic well owners and local officials with an interest in groundwater.
“I’ve looked at your Web sites and believe the well owner one will be a great tool for us to give to property owners with questions.” — Debby McElreath, Corporate EH&S Specialist, Chesapeake Energy Corp. Wellowner.org traffic has been boosted significantly as a result of NGWA ads that target well owners, which appear in Google Web search results. The ads have been clicked on more than 150,000 times, taking the viewer directly to NGWA’s Wellowner.org. NGWA has been a good steward of member dollars as these ads—valued at more than $71,700—have not cost the Association anything. As part of Earth Sciences Week, NGWA offered a Webinar focusing on women in the geosciences to encourage women to pursue a career in the groundwater industry.
Trust You Will Enjoy Enhanced Credibility Through Association
Your profession and the industry in which you work expects NGWA to move forward to meet the needs of our rapidly changing global society. To help members cope and prepare, the Association has responded with information vital for tomorrow’s success, using member interest areas to deliver insights around the globe.
“It was my pleasure to join you and participate in the Ground Water Summit. Congratulations on a great conference. My head is brimming with much information and ideas! I look forward to future opportunities for collaboration.” — Jim Taft, Executive Director, Association of State Drinking Water Administrators Collaboration with other stakeholders that impact the groundwater industry is a significant NGWA obligation to the membership. NGWA delivered messages about the need for a national groundwater monitoring network during the Association’s participation in an American Geological Institute work session that developed recommendations regarding federal water policy. Also participating was Dave Wunsch, Ph.D., of the Association of American State Geologists, a group for which he served as 2010 president. Wunsch joined the NGWA staff in October as director of science and technology. Following keynoter John Tubbs, assistant secretary for Water and Science, Department of Interior, a panel of representatives of eight federal agencies involved with groundwater matters presented their insights to the 450 groundwater professionals who gathered at NGWA’s 2010 Ground Water Summit in Denver to hear a record number of presentations in 27 sessions. Once again, the Summit hosted the Ground Water Protection Council’s Spring Meeting, as well. In a meeting with Air Conditioning Contractors Association officials, NGWA explained our industry does not find it appropriate to leave the impression that the drilling into the Earth is somehow less consequential than the HVAC aspects of geothermal heat pump systems. As a result, groundwater drilling and pump installation professionals are now to be mentioned in an ACCA standard on high-quality HVAC installations. Additionally,
New best suggested practices issued by the Association in 2010 were: • Reducing Problematic Concentrations of Iron & Manganese in Residential Water Well Systems • Reduce and Mitigate Problematic Concentrations of Stray Gas in Water Well Systems • Managing a Flowing Water Well • Reducing Problematic Concentrations of Fluoride in Residential Well Systems. Best suggested practice initiatives under way include those dealing with: • Aquifer storage and recovery • Groundwater sampling • Groundwater systems inspection • Reducing problematic concentrations of perchlorate in residential water well systems • Well and pump system operation and maintenance • Sustained yield in a hydrofraced well • Groundwater testing • Emergency residential water well disinfection following a flood event • Relationship between elevated levels of iron and arsenic in water wells • Safe handling of radioactive wastes from water treatment devices • Managing brackish groundwater.
• Compiled member comments on EPA’s Revised Total Coliform Rule Draft Assessments and Corrective Actions Guidance Manual, which sets out what public water systems will be required to do if total coliforms or E. coli are detected. NGWA’s two technical publications, Ground Water ® and Ground Water Monitoring & Remediation ®, saw their impact factors increase, making them all the more attractive as the journals in which to be published. An impact factor, also known as an IF, is a measure reflecting the average number of citations to articles published in science and social science journals. It is frequently used as a measure for the relative importance of a journal within its field. The 2009 IF for Ground Water is 1.831, an increase of more than 40 percent over the 2008 IF. The journal also improved its ranking from 18th of 60 publications in the water resources subject category in 2008 to 13th of 66 in 2009. The 2009 IF for Ground Water Monitoring & Remediation is 1.033, a slight increase over its 2008 IF of 0.957. The journal remained ranked 38th in the water resources subject category. Ground Water Monitoring & Remediation celebrated its 30th year of publication this year.
Trust You Will Be Introduced to, Interact with, and Learn from Each Other “That was a fascinating presentation on the Economics Interest Group Webinar. Thank you for setting that up!” — Chuck Job, Chief, Infrastructure Branch, U.S. EPA
The third edition of the Association’s Guidelines for Construction of Loop Wells for Vertical Closed Loop Ground Source Heat Pump Systems is now available. The electronic-only addition updates the document first created in 1997 and revised in 2009. As NGWA continues to aid in the advancement of the groundwater professions, the Association has developed an official NGWA lexicon, relying upon nearly 60 member volunteers. The lexicon of nearly 2,000 terms will support the Association’s efforts in standard development, best suggested practices, and certification programs. Members of the NGWA Developing Countries Interest Group continue to develop an illustrated guidance document for well construction in developing countries.
To respond with what you need when you need it, NGWA invests in nearly continuous improvement to its Web sites. In late 2010, we introduced a new www.ngwa.org, featuring an improved search engine and new content management system, among the most significant enhancements. This year, NGWA fully embraced a wide range of social media to connect with members and other customers. Our Facebook presence continues to show steady increases in fans from our May launch, while NGWA’s Twitter service provides the instant contact some expect. NGWA built community through The Well, our online discussion forum, exploring a wide range of topics and member challenges. The NGWA Blog debuted in August, initially featuring the observations of Executive Director Kevin McCray, CAE. To bring members closer to one of their customer segments, and to deliver useful information about groundwater and well systems, a special Water Well Journal ® edition focused on the professionals working at the nation’s 40,000 community water systems using groundwater. To assist members who may wish to lend their expertise or other resources to well projects in developing nations, NGWA has improved our online database on water-relief NGOs.
Trust You Will Learn the Required Skills to Enhance You and Your Operations “I just wanted to drop you a note and tell you how much the three of us from WSE enjoyed the Ground Water Summit. I think we each felt it was a valuable meeting, both from an education and from a business viewpoint.” — Mike Schnieders, Water Systems Engineering Inc. The Obama Administration has established a goal to double the number of meaningful (well-educated and qualified) credentials for the American workforce by 2020. The Employment and Training Administration, U.S. Department of Labor, is partnering with educators and credentialing bodies to ensure a strong and vital U.S. labor market. In response to national concerns about groundwater protection, the Association introduced the Certified Vertical Closed Loop Driller (CVCLD) designation. In an official position, NGWA has stated the grout and the loop tubing that transports the heat exchange media of a geothermal heat pump system are integral
Trust that Standards Are Being Improved Development of the proposed ANSI/NGWA water well construction standard is steadily pushing forward. The standard covers well siting; well casing selection and installation; screens, filter packs, formation stabilizer; formation sampling; plumbness and alignment; grout; well development; testing for performance; disinfection; water sampling; and well decommissioning.
parts of the loop well and that qualified individuals, such as a CVCLD, should be authorized to construct a loop well. Geothermal heat pump system work has delivered work in a year when traditional opportunities were too few. But, as a professional, you demand that your Association provide training and education that supports best practices for groundwater protection and optimal system operation. NGWA delivered on that expectation with NGWA-led field-based instruction in borehole grouting, the most frequently expressed concern from regulators. Industry manufacturers and suppliers are increasingly demonstrating their professional competence by earning NGWA’s Certified Sales Professional designation. Broader public and professional understanding of industry technology was advanced during free NGWA online events, such as the Webinar, Groundwater Well Research Needs: Current Problems Facing Utilities Using Groundwater Wells, and the second NGWA National Online Town Hall on Ground Source Heat Pumps. Recent economic conditions remind us that business skills are at least equally important to industry practices. NGWA responded with an instructional series on business management, in addition to the NGWA/Clemson University Construction Management Academy and its featured content on bidding and estimating. A white paper based upon member input to an NGWA-funded survey of groundwater consulting firm employees identified industry needs for improved sales, customer relationships, and business management skills. The research was conducted for the Association by Dr. Joan Berkowitz of Farkas Berkowitz & Company. Volunteers participated in the development of a new safety awareness video by NGWA and an independent vendor, which will be released in 2011. NGWA offered its first virtual international conference, Groundwater and Fractured Rock, including topics such as the explorations of the science of fractured rock in the Marcellus Shale, hydraulics, characterization, and remediation. “Tuesdays with Ian,” an innovative NGWA online Webinar series, featured Ian Clark, Ph.D., University of Ottawa, in “A Practitioner’s Guide to Isotope Hydrology.”
• Updated 51 groundwater-use fact sheets with current estimates of groundwater use, irrigation data, and new scientific consulting employment tabulations • For the 29th consecutive year, compiled annual state water well construction activity • Updated data sheets on public water systems using groundwater • Integrated county groundwater use into our information resources • Created a fact sheet illustrating groundwater’s economic importance to American agriculture • Recompiled a database of historic well construction data.
“My NGWA membership assists me a lot in progressing with drilling activities in my country. Through the NGWA Web site we are getting much more for the improvement of the implementation of water well drilling projects in Tanzania. This mainly is by updating my expertise through the NGWA Web site.” — Ernest Mziray of Tanzania We have taken actions to attempt to grow beyond the several hundred new members we add each year, and to raise our retention rates. Among our recruitment campaigns are efforts targeted at students; manufacturing firms that exhibit at the Ground Water Expo, but are not members; and supply houses with a significant percentage of business from the water well/geothermal sector.
[Baylor is] “…pleased to be part of this program [NGWA’s to involve students] and [I] have been active in NGWA for quite some time. I will encourage all of our students to join NGWA.” — Joe Yelderman, hydrogeology faculty and director of the Baylor University Wastewater Research Program We identified the 100 strongest university programs for groundwater. Together with faculty, we have identified the areas in which we can help faculty share the value of NGWA in a student’s education. We will be posting their school on a list featured in a student section of the Web site, and are inviting the schools to connect with our quarterly online presentations. Additionally, the Association is working to help students leverage their knowledge to help their careers with new services to assist in getting published in our peer-reviewed journals and how to become a presenter or moderator at an educational conference. Helping students advance their careers helps ensure a successful next generation of NGWA members. As members look for new employment opportunities, the Association is ready to serve their needs with the NGWA Career Center. In 2010, we broadened access to a larger database of relevant jobs for our job seekers—typically there are about 1,000 openings posted at any one given time. NGWA continues to add to its mix of benefits to meet member needs as prospective members increasingly are asking for tangible returns on their dues investment. The Association has teamed with Environmental Underwriting Solutions (EUS) to provide NGWA consulting members access to member-advantage priced errors and omissions insurance. If you are working part-time or on a seasonal basis, whether as an individual or a small business, the NGWA program offers affordable professional liability coverage. For those working full-time, EUS offers a variety of coverage solutions.
Trust You Can Easily Find the Products and Services Needed to Enhance Your Operations “This idea [ConsensusDOCS] is a complete breath of fresh air. Kudos to NGWA for taking on this important issue.” — Mike Eisner, PG NGWA was approved as an endorsing association of ConsensusDOCS, the only standard contract documents endorsed by 28 leading construction industry associations. Our motivation was for use on nonresidential water well projects. All of NGWA’s comments, developed by a member task group, were accepted for the ConsensusDOCS Guidebook, which seems to be somewhat unprecedented. Work began on a library of bid specifications and other forms used on large-scale water well projects. This members-exclusive library will be available through the NGWA Web site. Efficient and effective access to relevant information is an NGWA member expectation. In response, the Association maintains a number of data sets, which are updated from time to time. In 2010, NGWA: • Recompiled key data from the federal Farm and Ranch Irrigation Survey
As a benefit to contractor and supplier members, a Legal Resource Center Web site is now available to all employees and adult family members who are covered by CIGNA’s life, accident, or disability insurance. The Geothermal Cost Calculator is now available at no charge in the members-exclusive section on the NGWA Web site, and for purchase through the online bookstore. This third “tool of the trade” complements NGWA’s earlier Drilling Cost Calculator and the Pump Installation Cost Calculator. Members are now able to order clothing items from Dickie’s. Member utilization will also lead to ad sales, exhibiting, and/or possible auction donations, all of which help keep dues affordable. NGWA delivers extraordinary value to the Affiliated and Associated State associations. For instance, we provided, with just three hours of advance notice, one state association with information on direct exchange heat pump systems needed for a hearing with its state legislature.
For another state association, NGWA information and testimony aided the adoption of industry continuing education requirements and pump installer licensing.
“I belong to other non-profits and am amazed at the level of support the state organizations receive from the national association. NGWA offers a multitude of support/education/information to the states.” — Deanna Atkinson, director, Oklahoma Ground Water Association Working with Chubb Insurance Group, NGWA has brought to state associations a low-cost insurance package to protect their volunteers and paid staff. The 2010 State Leadership Conference in Washington, D.C., attracted 54 leaders from 25 states. During National Volunteers Week, NGWA recognized its nearly 300 volunteers.
Nonoperating revenue/expense added a net $457,000 to total net income, leaving the Association with total net income of $780,812. The Association paid $163,267 in federal income tax. From 2001 through 2009, the Association’s net assets (net worth) have gone from $3.9 million to $5.8 million. Approximately $4.6 million of the $5.8 million is held in investment reserves and operating funds, net of liabilities, and the balance consists of the NGWA headquarters building and its infrastructure. The Association has no debt other than normal trade payables, which average approximately $50,000 per month. Association staff totals 29. A six-year trend is shown below. Revenue in 2008 is skewed by investment losses; total revenue in 2008 would have been above $6 million without those losses. Other than 2008, the Association has been able to maintain profitability in spite of continued weakness in some revenue streams.
The National Ground Water Association’s primary revenue sources include member dues, education courses and conferences, advertising, and the annual Ground Water Expo. Supplementing these primary revenue sources are bookstore sales, insurance commissions, government grants and contracts, and investment income. Over the past five years, revenue has averaged approximately $6.4 million per year. Expenses have averaged approximately $5.9 million per year. Revenue totaled $5,354,434 in 2009 while operating expenses totaled $5,031,031. Operating income totaled $323,403 for an operating margin of 6%. Eighty-eight percent of total operating expenses in 2009 were devoted to the direct delivery of member benefits, while 12% of operating expenses were for management and general expenses supporting the delivery of these benefits.
Revenue/Expense/Net Trend $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $$(1,000,000) $(2,000,000)
2009 — Year in Review
• Operating cash flow totaled $432,182, which is consistent with 2008 cash flow of $500,870 • Investment reserves ended the year at $4,520,518 • Investment income—dividends, interest, and net capital gains—totaled $593,000 • The number of short course and conference attendees decreased by 61, a 4.3% decrease over 2008 o Short course attendance totaled 610, an increase of 79 attendees from 2008 (14.9% increase) o Conference attendance totaled 758 attendees, a decrease of 140 from 2008 (15.6% decrease) • Ground Water Expo attendance was 2,372 vs. 5,417 in 2008 • Average circulation numbers per issue for NGWA publications were: o Water Well Journal 24,293 o Ground Water ® 8,166 o Ground Water Monitoring & Remediation ® 8,176 • There were 4,293 Web site purchase transactions for 2009 totaling $655,121 or $153 per transaction.
2009 continued to be a challenge. Results from operating activities declined by $900,000 from 2008. Declines in revenue were primarily in the following areas: • Membership dues $80,000 • Conventions/expositions $557,000 (reflects New Orleans in 2009 vs. Las Vegas in 2008) • Advertising revenue $259,000. Highlights for the year included: • Operating revenue totaled $5,354,434—a 14% decline compared to 2008 revenue o Convention and exposition revenue decreased by $557,000 reflecting differences in attendance at the Ground Water Expo held in Las Vegas in 2008 vs. New Orleans in 2009 o Revenue from publishing activities, particularly display advertising in the Water Well Journal ®, decreased by $259,000 (15.8%) • Program expenses and management, general and administrative (MG&A) expenses totaled $5,031,031—a 16% decrease over 2008 expenses
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From September 2009 through September 2010, membership has declined by 699 members. The Scientists and Engineers Division declined by 547 members (6.9%) while Contractors Division membership decreased by 224 members (6.4%).
Total Membership Trend 12,400 12,200 12,000 11,800 11,600 11,400
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2010 — Projected Results
2010 has been a very difficult year for the Association in terms of financial performance. The Association focuses on delivering high quality member benefits and spending revenue dollars on mission critical activities that support members and the industry. Positive financial performance over the past 14 years has allowed NGWA to finance expenditures through operations, and to build reserves for “lean” times. Overall worldwide financial difficulties are impacting the Association just as they are impacting member and industry firms. Investment portfolios have had inconsistent results, reflecting the volatility in financial markets. We remain conservatively invested. Although membership trends have continued downward, September 2010 saw an increase in the total number of members. Advertising revenue has been impacted by advertisers’ reluctance to spend, yet we believe this is starting to change with some loosening of advertisers’ marketing spending. Educational offerings and conference attendance is impacted by cutbacks in travel budgets, particularly at the state and federal levels. We believe that quality content will drive attendance in spite of budget cutbacks. The Association has reorganized its marketing efforts, centralizing all marketing under a director of marketing. As our marketing messages become more successful in explaining the value of purchasing NGWA membership, educational offerings, certification designations, and other products and services, we believe that all membership will grow, as will attendance at NGWA educational events. The Association expects to generate $5.3 million in revenue, with expenses totaling $5.2 million. It is unlikely that investment earnings will contribute significantly to the overall profitability of the Association in 2010.
John W. Henrich, MGWC — President Art E. Becker, MGWC — President-elect John W. Pitz, CPI — Vice President — Contractors W. Richard Laton, Ph.D., PG — Vice President — Scientists and Engineers G.C. Nelson Jr. — Vice President — Manufacturers James Paulhus — Vice President — Suppliers Daniel T. Meyer, MGWC — Secretary Griffin Crosby Jr., CWD/PI — Treasurer
2011 — Looking Ahead
The 2011 budget is in development, with final approval by the National Ground Water Association Board of Directors expected during the Ground Water Expo. It is anticipated that 2011 will continue to be challenging. We anticipate maintaining membership at 2010 levels. It is also anticipated that display advertising will recover and that the return to Las Vegas for the 2011 Ground Water Expo will bring greater numbers of attendees than a traditional non-Las Vegas venue. It is expected that investment earnings will contribute little, if any, positive results to offset revenue weaknesses. The current investment portfolio is structured defensively in that low-risk investments make up the bulk of the portfolio. With low risk comes low returns. As the economic picture clears and market conditions warrant, NGWA will reevaluate its investment portfolio to move back into higher return instruments. The Association will continue to assess programming development and execution, as well as expense management, in order to continue to deliver the services and benefits that our members expect and to the industry as a whole.
Getting More Information More information on the financial performance and financial outlook for the Association can be obtained though the following sources: • Contact NGWA Executive Director Kevin McCray, CAE, at firstname.lastname@example.org • Contact NGWA Chief Financial Officer Paul Humes at email@example.com • Review the audited financial report included in the 2010 Delegates Book • Talk with any member of the NGWA Board of Directors.
Board of Directors
Alan G. Eades, CWD/PI — Past President Ron Brillhart John S. Christ Terry Farago Joseph Guardino Brent Murray, PG Richard Thron, MGWC Jeffrey W. Williams, CWD/PI
National Ground Water Association 601 Dempsey Rd. Westerville, Ohio 43081 USA 800 551.7379 or 614 898.7791 www.ngwa.org
Joe Large Daniel B. Stephens, Ph.D.