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T R E A S U R E R’ S R E P O R T

Last year at this time, we reflected on the various challenges FGM met head-
on and how the firm achieved profitability. We made reference to the
incredible “ride” that demanded swift and difficult decisions to overcome a
shaky beginning to FY 2015. We are very much aware, in our cyclical industry,
peaks and valleys are inevitable.

Now, a year later, we reflect on similar and continued challenges, the clear
and present kind, that presented even more pressing obstacles to profitability
for FY 2016. Let’s call it “The Perfect Storm.” Yet, unlike the movie, FGM
weathered the seemingly insurmountable waves and secured a profit, albeit a
modest one. Some of those challenges continue to loom, yet there are a few
success stories that should not be overlooked.

Despite the enormity of waves stemming from project delays, continued state
budget constraints impacting funding of new projects, and key client personnel
changes, FGM’s diversification strategy began to pay dividends. Lower net
revenue in PK-12 and Higher Education were partly offset by the emerging
Corporate practice and a steady Municipal market. Additionally, FGM’s
geographic expansion strategy began to yield some significant gains. We saw
success in our St. Louis office as net revenue earned from clients with a Missouri
zip code reached the $800 thousand threshold.

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