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Board approves FY2003 budget, decreases assessment fees
NFA's Fiscal Year 2003 budget, approved by the Board at its May meeting, calls for a reduction in administrative expenses of 2.3 percent compared to projected Fiscal 2002 expenses. This marks the first NFA budget where spending is less than the previous year's anticipated spending.
"We relentlessly pursue cost-savings at NFA," says NFA Treasurer Dave Hawrysz. "We are always looking for new ways to conduct our business more cost-effectively."
The reduced budget for 2003 is possible in part through efficiencies created by the recent restructuring of the organization and the launch of NFA's new Online Registration System. Those efficiencies allowed NFA to reduce staff by 10 percent. NFA has budgeted for 226 employees in FY 2003.
In addition to cost-savings from staff reductions, the launch of the Online Registration System will result in a saving of $263,000 because NFA will no longer incur the expense of maintaining its mainframe computer system at an outside service bureau.
The Fiscal Year 2003 budget also incorporates a reduction in the assessment fee rate. Effective July 1, 2002, the rate decreased from $.10 to $.08 per round-turn futures contract and from $.06 to $.04 per options contract. Assessment fee levels for mini-contracts will remain at $.04 per round-turn futures contract and $.02 per options contract.
"This decrease is the fourth reduction in the past 12 months," says Hawrysz. "Put another way, we have decreased the fee rate 43 percent since July 2001."
NFA's budgeting process begins in early February and is conducted with input from the Finance Committee. The budget was approved by the Executive Committee in April and the Board of Directors in May.