new programs and new products. ASNT has never had to tap our opportunity reserves. This is most likely due to the large balance of undesignated reserves available. This will continue to be the case for the foreseeable future. With the adoption of the ASNT Strategic Plan for 2022–2026, ASNT antic- ipates a period of significant financial investments to fund strategic initiatives designed to grow and enhance the asso- ciation. The plan contemplates a total investment of as much as $14 million over five years. Rest assured that each and every initiative is closely considered, analyzed, and justified before the Board of Directors approves its funding. The Board of Directors then closely oversees progress against the initiatives to ensure the funds are spent appropriately. The investments in these initiatives show up as expenses on the Statement of Activities. For the fiscal year 2022, we recorded more than $560,647 in expen- ditures to support strategic initiatives. ASNT’s revenues for the year were $7.35 million, which was an improve- ment of 11% over the prior year. While revenues in conferences rebounded somewhat due to the running of the Annual Conference, revenues in all areas remained somewhat depressed following the pandemic. This is consistent with what we are seeing across the association community the discussion has turned toward recognizing this may be our new normal. With the return of in-person meet- ings, costs to support our governance and volunteer activities returned to pre-pandemic levels. The main difference from prior years is due to a change in our accounting practices: we now record staff labor costs in the program area they support. In this case, the governance and volunteer expenses are about $130,000 higher than 2019 due to the allocation of labor costs to these accounts. Other costs in this area include volunteer travel and board and committee meeting costs that were lower than pre-pandemic levels. Administrative expenses are those expenses related to operating the company, but not directly related to programs in support of volunteer and governance activities. They are over- head-type costs. Our total costs returned to pre-pandemic levels, although what we spent money on shifted in some areas. For example, whereas deprecia- tion expenses for software acquisition and software development investments averaged $625,000 annually between 2018 and 2021, those costs have been cut in half as we change out obsolete IT systems. This is offset by increased expenses in contracted services as we develop, configure, and implement the new association management system and certification management system. When the strategic initiative expendi- tures are included, ASNT’s net deficit for the year was $2 million. Lastly, members should be aware that the Business and Finance Committee, which is well represented here today, is deeply engaged in the financial oversight of the association. The committee meets monthly to review financial reports and to question management on the details. Business cases providing financial analysis and justification for any new projects are required the committee closely evaluates these business cases before providing its assessment and recommendations to the Board of Directors. We realize that we cannot rely on gains from our invest- ments to cover operating losses indefi- nitely, and we continue to work to identify ways to mitigate the financial impact from the pandemic while at the same time providing the resources needed to operate and grow the association. SOCIETYNEWS | SCOPE ANCIAL REPORT FOR FY2022 STATEMENT OF FINANCIAL POSITION Assets 2022 2021 Cash 208,741 1,062,706 Accounts receivable* 300,996 249,669 Inventories, net 1,219,628 1,170,512 Prepaid expenses 476,287 230,741 Employee Retention Credit receivable 263,466 –- Total current assets 2,469,118 2,713,628 Property and equipment, net 2,042,624 1,410,162 Investments 27,446,632 33,008,765 Other assets 86,406 49,937 TOTAL 32,044,780 37,182,492 Net Assets without Donor Restrictions 2022 2021 Available for operations 6,260,131 12,838,683 Board designated 20,020,872 18,925,216 Total net assets 26,281,003 31,763,899 Revenue 2022 2021 Membership 883,253 846,513 Subscriptions and advertising 689,398 710,570 Book sales 1,351,770 1,444,466 Conferences 1,322,365 263,605 Learning programs 261,629 323,688 Technical services and certification 2,839,542 3,038,360 TOTAL 7,347,957 6,627,202 Expenses 2022 2021 Program expenses 5,219,532 4,869,244 General, admin, and fundraising 4,172,339 3,531,026 TOTAL 9,391,871 8,400,270 CHANGE IN NET ASSETS FROM OPERATIONS (2,043,914) (1,773,068) Other Income Miscellaneous 54,658 35,050 Net investment return (4,562,133) 6,886,049 Paycheck Protection loan forgiveness 805,027 770,952 Bureau of Worker’s Compensation refund – 11,473 Employee Retention Credit income 263,466 – TOTAL (3,438,982) 7,703,524 CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS (5,482,896) 5,930,456 *net of allowance for doubtful accounts J A N U A R Y 2 0 2 3 • M AT E R I A L S E V A L U AT I O N 77 2301 ME Jan New.indd 77 12/20/22 8:15 AM

SCOPE | SECTIONNEWS CHARLOTTE C H A R L O T T E , N C 2 3 S E P T E M B E R 2 0 2 2 41 AT T E N D I N G Ñ The Charlotte Section kicked off the 2022–2023 program year with the 28th Annual Shrimp Boil. The agenda included the Section’s monthly meeting and the introduction of honored special guest ASNT President Danny Keck, who gave a presentation of ASNT’s five- year plan for growth and improvement. Outgoing Section Chair Rod Stephens was also recognized. After the Section meeting, members and guests enjoyed a shrimp boil dinner prepared by longtime Charlotte Section member Bob Smilie. The event was hosted and sponsored by FlawTech. GREATER HOUSTON H O U S T O N , T X 15 S E P T E M B E R 2 0 2 2 3 5 AT T E N D I N G Ñ The Greater Houston Section hosted a “student hour” to introduce local NDE students to the NDE industry outside of the classroom. The following members donated their time to speak to the group: Section Chair Stacy Cotie, Samuel (Roger) Jordan, and Xavier Quintanilla. Students attended from the following schools: San Jacinto College, Ocean Corp., Lone Star College, and North Harris Community College. Cotie covered the benefits of being part of a professional society such as ASNT, both at the local and national level. Jordan discussed his personal career in the NDT industry and the awards and scholarships that the Section offers to students and technicians. Quintanilla discussed and presented his career path on becoming an expert in the robotics field within the inspection industry. GREATER LOS ANGELES L O S A N G E L E S , C A 13 S E P T E M B E R 2 0 2 2 2 0 AT T E N D I N G Ñ The Greater Los Angeles Section held a meeting at Bruce’s Prime Rib and Spirits in Santa Fe Springs, California. The speakers were Board members, who introduced themselves and described their background, title, and tasks for the 2022–2023 program year. OLD DOMINION R I C H M O N D, VA 2 6 S E P T E M B E R 2 0 2 2 11 AT T E N D I N G Ñ The Old Dominion Section held a meeting at the Atlee Branch of the Hanover County Public Library. John C. Duke, Jr., visited to deliver a presenta- tion on areas of emphasis for the Society and to hear feedback from the Section. Section Chair Nicholas Wennberg reviewed the events of the summer with interest to the Section and thanked some individuals for their help in attaining the Gold ranking in ASNT’s President’s Award program, particularly Treasurer Lisa Barony and Dr. Deonna Woolard for producing the annual yearbook. ROCKFORD STATELINE R O C K F O R D, I L 11 O C T O B E R 2 0 2 2 8 AT T E N D I N G Ñ The Rockford Stateline Section held a virtual meeting featuring a presentation given by Stuart A. Kleven of Alloyweld Inspection titled “Qualification of Digital Computed (CR) X-ray Systems.” | SPOTLIGHTCHARLOTTE The Charlotte Section kicked off the 2022–2023 program year with the 28th Annual Shrimp Boil, which featured a presentation from ASNT President Danny Keck. Charlotte Section Chair Roy Duce (left) presented a Speaker’s Award to Keck. 78 M AT E R I A L S E V A L U AT I O N • J A N U A R Y 2 0 2 3 2301 ME Jan New.indd 78 12/20/22 8:15 AM