This purpose of this post is to raise issues that merit discussion between
the ARMA International Board of Directors, the staff of the Association and
its members regarding the Association’s financial status and the clear lack
of transparency exhibited by the Association at a national level and its
members.  I have NO interest in using this to attack any individual nor in
using this as some launching point from which I might promote my
involvement in the Association beyond being a member deserving of answers
to what has happened in recent years.

As I understand it, we are in a near untenable financial situation and that
a large part of the problem we face stems from a decision to build some
sort of software evaluation tool designed to boost non-conference and
non-dues revenues.  While I applaud the thought that ARMA needs to seek
non-traditional revenue sources, I challenge the foundation on which the
Association decided to enter the software business.  Again, as I understand
it, there was NO market study suggesting that the software tool in question
was needed nor “in demand” by any identifiable group.  I also understand
that there was no appropriate level of project management that could have
prevented a $ 1.2 million overall loss to the Association (and its members).

My information on the loss may not be entirely correct, but here is what
the ARMA International 990 forms show. The numbers suggest that there may
be additional reasons for our financial decline:

Total loss over the last 5 years = $2,091,453 as stated in the 990's

FYE 6/30/12 .... -94,708

FYE 6/30/13 ..... - 133,170

FYE 6/30/14 .... - 611,643

FYE 6/30/15 ..... -831,016

FYE 6/30/16 ..... - 430,986

What factors beyond the software project loss account for the frighteningly
high financial losses?  Is our membership no longer at a level that can
sustain 22 full time employees?  If so, how does ARMA International’s Board
of Directors plan to address this chronic problem?

I have heard that ARMA is projecting a $250,000 loss fr FYE 6/30/18.  Why?

I would like the Association as a whole – the Board and the staff to
explain a few things to the membership including the following:

1.        On what basis was a decision made by the Board of Directors in
prior years to launch a major initiative to get into the software business?

2.       Why were members…who could readily have called this initiative
into question…not engaged in a discussion of the project, its potential and
its risks?

3.       When it became clear that losses were mounting from $90K+ to 800K+
to now a total of $ 1.2 million, why were no corrective actions taken?  As
a second part of that question, WHO if anyone was minding the store?

4.       Why has ARMA turned away from being transparent with its members?
You must be aware that bad news travels quickly and that without full
information that misinformation can readily develop and spread just as
rapidly?

5.       When will this Association, at a national level become fully
transparent with its members?  We each have a stake in the Association’s
success, have fervent desires for its success, but cannot contribute with a
fully transparent Board of Directors and a fully transparent staff group?

6.       What is the current regarding the Association’s finances?  Where
are we with what was once a healthy reserve fund?  Has that been fully or
substantially depleted?

As a Past President ARMA International, and as a past member of the Board
of Directors, I can tell you that we have had to learn several times that
transparency works best when it is practiced.  Whenever we have erred and
failed to be transparent, we have made serious mistakes that cost us money
and have cost us members in the past.  I won’t go into those past instances
here.
I call on the ARMA International Board (you are the people responsible) to
come forward now to be transparent about what has happened, to be frank
with the membership on what has happened and to be bluntly honest with our
current financial prognosis.

Douglas P. Allen, CRM, CDIA+
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