Council Performs Well in Latest Audit

Last month, Northwest Mountain MSDC President & CEO Fernando Martinez sent the following letter to Council stakeholders on the results of its most recent financial audit. The letter is below.

 

Dear Stakeholders,

Last year, 2014, was a year of change for the Northwest Mountain MSDC (“Council”). The National MSDC launched a national restructure—from development of a new affiliation agreement, to a new regional council structure, to a new compliance model, and to a new affiliate funding model—that was significant. As the Council effectively played its part and managed its role in the national changes, the organization still kept its focus and continued to drive value towards regional Members and MBEs. The national changes were positive for the Council, as reflected by the 2014 financial statements.

The national restructure resulted in a complete revamping of the field organization: the Council entered into a new Affiliation Agreement with the National MSDC after months of negotiating Terms and Conditions. The Affiliation Agreement established new compliance requirements. The restructure consolidated regional councils from 36 to 24, integrating Utah and Wyoming into the Northwest region (thus, our name change from “Northwest MSDC” to “Northwest Mountain MSDC”).

This consolidation led to increased funds to the Council. While the National MSDC revenue stream remained status quo, the Council received a larger share of its funds due to the addition of two states into its region.

Although the national restructure has had a positive impact upon the Council, certain risks do exist that may affect overall performance, but specific to regional funding and programming:

  1. Adjust three specific internal processes, per an audit recommendation
  2. An economic downturn in any part of our region can affect Member and MBE engagement, and participation
  3. A de-prioritization of Supplier Diversity as a business strategy can affect Member commitments which will affect MBE involvement

The stated risks are visible to us within our region and within a short- to mid-term period. However, there may be other factors not within our view or control, which may threaten the Council in the future. Understanding the existence of real and veiled risks, the Council is continuously monitoring and mitigating outcomes through effective countermeasures, value delivery, program innovation, and support of all Members and MBEs.

Overall the Council performed well in 2014. We must continuously improve our performance. We must continue to innovate, grow our value, and remain relevant to our stakeholders and their customers.

We challenge ourselves and commit ourselves to the growth of our Member firms and agencies, MBEs, and the Council.