OFFICER’S MESSAGE
NMEDA’s Financial Health During COVID-19 By Jud DeMott NMEDA TREASURER
T
he Coronavirus seems to have
half of fiscal ’20. Then a number of
directed the association to target
affected most all businesses
dealers have requested that their
our IPR spending more on influencer
and organizations in one
scheduled audits be postponed due
groups and less on the general
way or another. Home improvement
to budget restraints also affecting
consumer. And since most of those
stores are doing a booming business.
NMEDA revenues.
influencer events and conferences
Even some restaurants report sales
have been cancelled, so have our
increases with carry-out and delivery
Now the Good News….
surpassing their total sales pre-
First, Danny and the NMEDA staff
the IPR budget is healthy by natural
COVID. But many other businesses
have done a stellar job of holding
(although unforeseen) events.
and industries are not faring so well.
down expenses. Any expense that can
Our industry qualifies as “essential
be cut has been cut. A salary freeze
business” in most states, so that
has been put into effect, and no new
generally has allowed us to keep
hires are anticipated in the short run.
our doors open. But that doesn’t
Second, over the years, NMEDA has
mean that our customers are willing
staff over the years. And as your
established a significant reserve fund
to venture out. I have talked with a
businesses re-open and you begin to
to address just such shortfalls. That
number of you, and learned that sales
“see light,” please be sure to get any
is in keeping with best practices
levels have varied from almost non-
postponed audits rescheduled. If you
for non-profit organizations like
existent, to nearly “business as usual”
have ideas on how NMEDA can assist
ours. The operations budget for
depending on our local situations.
in the re-opening of our dealerships,
fiscal 2021 was just approved by
contact Danny or any board member.
So how is your NMEDA organization
the board, and it does contemplate
We are very open to your input.
doing? We count on our annual
dipping into the reserve fund this
conference as a major revenue source.
fiscal year. The board also approved
With our co-located conference
a recommendation from the Finance
being moved to fall of 2021, a big
Committee to rebuild the reserve fund
hit was made to our fiscal 2021
by setting aside an additional 25% of
budget (7/1/20–6/30/21). And the
excess revenues in future years until
pandemic put a big dent in our fiscal
the fund is replenished to FY20 levels.
2020 budget. We are seeing a lag
With regard to the IPR (Industry
in revenues. With our restructured
& Public Relations) budget… As
QAP audit program, NMEDA bills us
you know, IPR income is directly
dealers, then pays the audit firm. Our
tied to sales of goods from our
contract reduced your audit fees,
manufacturing members to us dealers
which is a great thing. But RADCO
(the CAP fund). With sales down, we
got off to a slow start, so there was
dealers are buying less goods, ergo
decreased audit income for the first
less IPR revenue. But you dealers had
8
NMEDA Circuit Breaker
participation and travel expenses. So
All this to say that the NMEDA patient is healthy due to historically sound fiscal policies and good stewardship of NMEDA funds by leadership and
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