Financial growth, strength, and diversity
Financial results for the Association of Social Work Boards, Inc., reflect growth, strength, and diversity. This growth provides organizational strength, as the association builds its reserve and further promotes the ability to diversify its assets.
Under the association’s conceptual framework, 20 percent of net operating income is earmarked for general reserves and 80 percent of net operating income is earmarked for designated reserves. Designated reserves provide for the contingency of exam/legal defense (with a goal of $10 million funding) and for assurance of business continuation (with a goal of 18 months of operating expenses). Based on 2018 operating expenses, the designated reserves equal 85 percent of the combined goals.
The association has a portfolio of diversified investments professionally managed by Morgan Stanley. These investments are held in a conservative short-term fund and a moderately conservative long-term fund as defined by the association’s investment policy. The association’s acquisition of land and the ongoing development of the new headquarters represent another diversification of assets. Through December 31, 2018, the association had invested $2,398,000 in land for the facility and $2,444,517 in construction costs. Most of this cost has been covered via internal financing with operating income and a low-interest line of credit. The building is scheduled to be completed by the end of 2019.