2008 Financial Audit

Dear ICF Members,

As the current treasurer of International Coach Federation it is my pleasure to present the annual audit for the year ending March 31, 2008. It will be evident to you upon review of the report that ICF, with the help of the management team, has continued to make great strides toward increased financial stability and security.

Some of the major highlights of the past fiscal year include:

•  The total revenues of ICF increased by 15% year over year. Membership dues and conference were the main reasons for the increase in revenues. Both membership and conference revenue increased by 18% over last year. The Coach Referral Service (CRS) is no longer a charged service but is now a free benefit to credentialed members, which resulted in the loss of $90,000 of revenue in FY08.
  
  
• Cash reserves and Net Assets have continued to increase (respectively by 41% and 65%) which has made ICF more financially secure. ICF is currently working toward building reserves to the equivalent of six months of operating costs. This enables the Board of Directors and the association to concentrate on high level strategic decisions that will affect ICF in the years ahead.
  
  
• Cash balance for ICF has continued to rise over the past few years. ICF cash is currently in a sweep account at Fifth Third Bank. A sweep account is in place to protect ICF if Fifth Third were to file for bankruptcy. A sweep account protects cash by being invested in government securities.
  
  
• The Finance Committee has focused its efforts in shaping a long-term finance strategy with the aim of developing and maintaining a robust financial foundation to ensure viability of the organization, and support the fulfillment of the ICF strategic plan. Among others, discussions of goals and guiding principles have been focused in the areas of reserves, ratio between membership dues and other revenue sources, and guidelines for non-dues revenue projects.
  

The current fiscal year has been approved and it shows the will of the ICF to make substantial investments for new initiatives and major enhancements, now that its financial situation has been strengthened. Three strategic initiatives that will reinforce the position of ICF in the global arena are:

1. The creation of Regional Service Centres in Europe and Australia;
   
   
2. The enhancement of the credentialing process that follows the ISO (International Organization for Standardization) standards and that will represent a cutting edge, competitive and robust system; and
   
   
3. The launch of a global consumer study that will build strong PR opportunities for ICF and the individual members while reinforcing the public awareness of the positive impact of coaching.