NFPA Journal - Summer 2023 - 32

Treasurer's Report 2022
FROM MICHAEL WALLACE,
TREASURER
In accordance with
general responsibilities, the
following NFPA Treasurer's
Annual Report is issued to
Association members.
NFPA REMAINS FOCUSED on creating a global growth
business that is based on greater digital delivery of information
and a more continuous connection with customers. 2022 was
a year with continued impact of COVID, the war in Ukraine, and
inflation that required significant interest rate hikes by the
US Federal Reserve. It was also marked by ongoing threats to
intellectual property.
Volunteers and members are the backbone of NFPA. We see
outstanding participation in our technical committee activity
and continue to improve safety through each revision of our
codes and standards.
Revenue in 2022 improved over 2021 and showed good
recovery from the major impacts that the pandemic had on
companies, associations, and individuals. Costs, however, also
increased in both personnel and operating expenses, in part
due to significant inflation as well as a broader resumption
of travel due to improvements following the pandemic. NFPA
remains financially strong despite finishing 2022 with an
operating deficit.
NFPA continues to invest heavily in digital transformation
to better serve and expand its customer base. We are making
further investments to NFPA LiNK®
to broaden this awardwinning
platform to enhance access to NFPA codes and standards,
as well as to additional information that can help users
solve their day-to-day problems. We are also making ongoing
large investments to modernize our back-office infrastructure
and ultimately provide all of you-members and customers-
with better tools to find what you need from NFPA.
Lastly, NFPA continues its significant investment to vigorously
defend our intellectual property so that we can remain a
premier developer of codes and standards for the next century,
ensuring that all those who depend on this information and
knowledge do not have to do without it.
NFPA has the commitment, drive, and financial strength to
meet the numerous challenges of the times and to help make
the world a safer place.
$'000s
2022
Statements of Financial Position
Assets
Cash and cash equivalents
Inventory, accounts receivable, and other assets
Investments
Real estate investments, property, and equipment
Total assets
Liabilities and net assets
Accounts payable and accrued expenses
Pension liability
Deferred revenues
Total liabilities
Total net assets
Total liabilities and net assets
Statements of Activities
Revenue
Publications
Membership
Training and other
Total revenue
Expenses
Operating deficit
Real estate investments surplus
Pension liability adjustment
Investment return
Gain on extinguishment of PPP loan
Change in net assets
Net assets as of beginning of year
Net assets as of end of year
Statements of Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents as of beginning of year
Cash and cash equivalents as of end of year
$10,771
$31,888
$267,075
$52,330
$362,064
$18,015
$10,085
$12,086
$40,186
$321,878
$362,064
$14,397
$27,121
$314,542
$51,571
$407,631
$11,773
$9,145
$12,441
$33,359
$374,272
$407,631
$'000s
2021
$54,432
$11,431
$14,351
$80,214
$47,122
$10,771
$13,375
$71,268
(89,684) ($73,227)
($9,470)
$985
($1,959)
$773
$1,715
($45,624)
-
($52,394)
$15,474
$29,516
$4,819
$48,623
$374,272 $325,649
$321,878
$374,272
$12,066
$7,443
($15,692) ($12,404)
($3,626)
$14,397
$10,771
($4,961)
$19,358
$14,397
32 | NFPA JOURNAL * SUMMER 2023
NFPA Journal - Summer 2023

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