The Massage Pundit

Were it not for the fact that I have already posted a blog titled Financial Shock and Awe at the NCBTMB, I could certainly have used that for this one. The subject matter is the same: the Form 990 filing of the NCB, except this one is for the latest return, from the fiscal year 2008. The previous posting was about the 2007 form.

Here are the cold hard facts: Revenues were down by over a million dollars, while expenses were up almost that much.  The NCB is showing almost $2 million in losses for 2008. Their assets have declined by almost $3 million dollars. To borrow a phrase from another well-known pundit, Cliff Korn, “Can you spell fiduciary malfeasance?”

2008 was the year of the Feeley administration. If you need a rehash of all my real and imaginary issues with her tenure there, just read back through the blog roll. I spent much of 2008 picking on the fact that her compensation as a “volunteer” was $118,000, plus her expenses. Then there was the utter disgrace of holding a board meeting in Hawaii, and topping that off was the $20,000 gift because she supposedly couldn’t afford health insurance. What a resounding slap in the face to all the massage therapists out there who don’t make a fifth of that money and can’t afford any, either. Fiduciary malfeasance isn’t a strong enough term, but I try to avoid cursing on the blog.

Revenues were down across the board. The NCB took in less money in all areas, including examinations, recertification, CE provider approval, sale of study guides, and investment income.  We’re in a recession, one that was cranking up hard in 2008, and the revenue shown by the FSMTB for the MBLEx in 2008 was nowhere near enough (slightly over $300K)  to explain the losses by the NCB.  The NCB also spent a massive amount of money on entertaining volunteers at regional meetings, trying to improve their public image, and paying lawyers and lobbyists to interfere in state governance.

My blog  on the financial health of AMTA (Oct 2009) included the fact that they had taken an almost $6 million hit in their investments, along with lowered revenue and increased expenses. I gave them the chance to respond and they did. In the spirit of fairness I gave the same chance to the NCB. Paul Lindamood, who came on as the CEO in January of 2009, sent me a statement which I will reprint here:

“The chair and I began work on January 2 of 2009, immediately and expeditiously, to bring the business management and financial situation into order. Here is an overview, in part, of some of the steps that were taken:

• We promptly put into place a revised budget based on realistic projections and a thorough cost analysis.
• We changed the CFO function to include a third party firm, as well as incorporating finance committee oversight comprised of board members with clear separation from day to day operations. This afforded them objective oversightof monthly financials, forecasting and expense reduction.
• The board, under the guidance of Chair Delaporta, approved substantial changes designed to eliminate extraneous and excess cost associated with board and committee meeting venues, including transportation and per diem costs.
• Operational changes went into effect including such things as a re-assessment of job functions, redefining of work processes and such cost-cutting modifications as use of on-demand digital printing and in-house mailing.
• Elimination of certain outside vendor services and cost containment by bringing communications and public relations in house.
• Other cost reduction in many areas, ranging from cutbacks in marketing and legal expenditures to more judicious participation in professional and trade venues.

In short, we have worked hard to tighten belts and redefine how we manage our business. The bottom line is that NCBTMB should come very close to concluding 2009 in the black. I do not have December financials yet, but it looks promising. In any case, I think it’s fair to say that avoiding an operating loss after 2008 — and in this economic environment — represents a responsible and decisive overhaul.”

Lindamood went on to say ” since the 2009 audit won’t be available for a while, my estimates will have to suffice, but our CFO firm and our board will corroborate.  2008 notwithstanding, I am proud of the teamwork between board and staff here to turn the ship around. It was described, in fact, by one financial expert as a ‘textbook turnaround.’

I know that a solid 2009 neither explains nor mitigates the performance in 2008 (the year of the current 990’s). But I hope it demonstrates
that we have learned from the past, and have decisively identified and put into place changes that are helping us re-establish ourselves as
being back on course, as worthy stewards of certification for the profession. Thank you for the opportunity to respond.”

I appreciate the willingness of our professional organizations’ leaders to reply to my queries.

It did not give me any perverse pleasure to report that AMTA took a $6 million hit on investments, nor does it give me any pleasure to report that the NCBTMB was almost bankrupted during the Feeley administration. Another year of that,  and we’d probably all have seen the NCB on the auction block. I feel that as a certificant, I have the right to know, as do all their other stakeholders, and I also feel we have the right to know what’s being done to correct the situation. I hope they can pull out of the mess that was created, and that’s a hard row to hoe while we’re still in a recession economy.

Peace & Prosperity,

Laura Allen