Report of the General Secretary-Treasurer

OPENING

The 58th Convention finds the IAFF more powerful, financially stronger, larger, and better positioned than at any point in recent memory, making us one of the most successful Unions in the House of Labor. Across the International, our work has been guided by a clear commitment to fiscal responsibility, transparency, organizing, operational discipline, and direct support for affiliates. The Office of the General Secretary-Treasurer has focused on strengthening the financial foundation of the IAFF while expanding the resources available to local leaders and members.

Since 2021, the IAFF has made measurable progress in nearly every area under the Office of the GST. Membership has grown significantly, financial reporting has improved, all of our reserve accounts have grown, our consolidated financial audits have continued to improve year after year to the point where we achieved a clean unmodified audit (an Aplus in the auditing world – and arguable the best audit in IAFF history), a long overdue procurement policy that has produced real savings, pension governance that has secured the ERISA defined benefit plans bringing responsible change that will save over $75 million over the next 25 years, and affiliate financial assistance has become more direct, more practical, and more responsive. These accomplishments reflect the combined team efforts of the Executive Board, the General President’s Office, the Office of the GST, IAFF staff, District Vice Presidents, state and provincial associations, and local affiliates across our great Union.

GROWTH, ORGANIZING, AND MEMBERSHIP STRENGTH

The IAFF continues to grow because both current and prospective members see the value of belonging to a strong, active, and fiscally responsible International Union. Membership growth has been one of the defining accomplishments of this period. The International has added tens of thousands of members since 2021, and recent reports show more than 368,000 members and more than 3,600 locals. This represents a dramatic increase from April 2021, when the IAFF had approximately 322,000 members and 3,407 locals.

That growth is not coincidental. It reflects the hard work of the DVPs, the Organizing Department, the Membership Department, and local and state/provincial leaders who have made organizing a priority. Newly chartered locals have been welcomed into the IAFF, and the membership database has been continually updated to reflect this expansion. The growth in membership has also had a direct financial impact, with per capita revenue exceeding budgeted projections and contributing to positive operating results. As membership grows so does the power of each per capita penny. In 2021, one penny generated $35,000 per year. In 2024 one penny brought in $37,500. Now, in 2026, that penny of per capita means $ $40,000 in annual revenue to the IAFF.

The General Administration Division in the Office of the GST launched and refined a customized local dashboard that provides local leaders with demographic information, officer lists, membership size, charter dates, FIREPAC giving history, financial report status, bond information, and other key data. The dashboard also provides a custom QR code sign-up tool to help locals enroll new members more efficiently. This technology improves data integrity, streamlines local operations, and strengthens the IAFF’s organizing efforts.

FINANCIAL ACCOUNTABILITY AND BUDGET DISCIPLINE

One of the most significant accomplishments of this Executive Board and the Office of the GST has been the continued strengthening of the IAFF’s financial position. Fiscal discipline, improved reporting, stronger internal controls improving checks and balances, and adherence to financial policies have produced positive results year after year. Fiscal Year 2024 ended with a positive variance of approximately $3 million, with $1.65 million transferred to reserves. Fiscal Year 2025 ended with a positive variance of nearly $7.5 million, including a transfer of more than $6 million to reserves.

This strong performance has allowed us to increase the required cash balances in the US and Canada to start each fiscal year. What this means is we no longer need to rely on draw downs on our line of credit, paying unnecessary interest on that draw, to fund big expense items like IAFF conferences that occur early in the fiscal year. Strong financial performance always nets greater savings to you, the members.

These results were driven by responsible budgeting, membership growth, careful expense management, strong procurement controls, and a dedication to making difficult decisions in the best interest of the membership. Per capita revenue exceeded budgeted levels, reflecting organizing success and increased membership. Salary, fringe, conference, travel, and consultant expense lines were monitored closely, and one-time positive variances were used strategically to address future needs rather than simply expand recurring expenses.

The FY26 budget was balanced at more than $97.8 million in expenses and revenue, and the FY27 budget process began early with projected per capita revenue of approximately $81 million and non-per capita revenue of approximately $15 million. The preliminary FY27 budget used a per capita rate of $20.10 due to Department of Labor CPI-W inflation of 2.6% (51 cents). Convention delegate action will add to that amount.

The IAFF also modernized its financial systems by moving from Microsoft Dynamics GP to Microsoft Business Central and from ReQlogic to Yooz for invoice management. This transition moved core accounting and procurement functions from network-based systems to cloud-based applications, improving accessibility, workflow, invoice processing, and compliance. The change required coordination across divisions and represents a major operational milestone.

RESERVE GROWTH AND LONG-TERM STABILITY

Building the IAFF reserve fund has been one of the clearest measures of progress. Convention delegates passed Resolution 26 in 2018, directing the IAFF to build reserves equal to four (4) to six (6) months of operating expenses. In 2021, reserves were far below that goal (approximately 20%). Through strong fiscal management, disciplined budgeting, and the application of a new Cash Management Policy adopted in June of 2021, the IAFF has made remarkable progress toward that mandate.

Recent reports place the IAFF at nearly 98% of the four-month reserve goal and approximately 67% of the six-month goal, noting that the targets increase as the budget grows. In actual dollars that means an increase in reserves from $4 million to $25 million over the last five (5) years. This progress has materially strengthened the IAFF’s financial security and gives the International greater flexibility to respond to operational needs, unexpected challenges, and future opportunities without weakening the organization’s foundation.

CLEAN AUDITS, TRANSPARENCY, AND ACCOUNTABILITY

The IAFF has continued to receive clean, unmodified audit opinions, the highest rating possible in the auditing world. For multiple consecutive years, independent auditors found no material weaknesses or significant deficiencies in the IAFF’s financial controls or records. In the most recent audit cycle, auditors provided no written recommendations, found no internal control deficiencies, and reported no difficulties in performing their work. This is the best audit finding in the history of the IAFF, and it is a major milestone and a direct reflection of improved systems, stronger controls, and the work being done to create financial security.

The audit also confirmed that the IAFF continues to dedicate the overwhelming majority of its resources to programs and services for members. Approximately 77% of the IAFF budget was directed to programs, well above the commonly accepted benchmark (60%) for strong program investment. Net assets also increased substantially, by over $21 million, over the reporting period of Fiscal Year 2023 through Fiscal Year 2025, reflecting the combined effect of operating discipline, investment performance, and reserve growth.

Transparency has also improved through timely filings, stronger reconciliation practices, Board of Trustees reviews, more detailed budget reporting, and clearer communication with affiliates. The IAFF’s annual LM-2, SF-SAC, 5500, 990, W-2, 1099, Canadian T-4, and T-4A form filings have been prepared and filed within required timeframes. These compliance milestones demonstrate responsible stewardship of member dues that is a hallmark of the Office of the GST.

PROCUREMENT REFORM AND COST SAVINGS

The IAFF’s procurement policy has matured into a meaningful accountability tool. Requiring Requests for Proposals (RFPs), purchase orders, legal review, procurement review, and documented approvals has helped protect the organization while ensuring that vendors are selected based on value, quality, and compliance with policy. The transition to the procurement software Yooz has further improved compliance by creating a clearer electronic record for invoices, contracts, and approvals. The enforcement of a strong procurement policy and requiring thorough documentation for expenditures is also a reason for our strong financial audit ratings.

The results have been tangible. For example, the use of RFPs produced nearly $100,000 in annual savings through renegotiated contracts with just two of our vendors (actuarial and shipping). The procurement process also led to improvements in insurance brokerage services, bond renewal management, and vendor oversight. These savings are more than administrative wins; they are examples of fiduciary discipline that protect member resources for the programs and services that matter most.

GST staff has also worked with the GP’s staff and Grants Administration to develop a customized procurement process for grants. This will align grant-related procurement with federal requirements while reflecting the operational realities of the IAFF. The continued refinement of the procurement policy is important in building a sustainable culture of good governance, compliance, and accountability.

PENSION GOVERNANCE AND INVESTMENT OVERSIGHT

The Office of the GST has made major progress in pension governance. Working with plan counsel, the IAFF completed administrative pension manuals and summary plan documents for both of our ERISA defined benefit plans, the Employees’ Pension Plan and the Staff Representatives’ Pension Plan. This work reflects the best ERISA practices in pension administration and responds to recommendations from prior internal reviews. These manuals provide clearer guidance for participants, administrators, and staff, and help ensure consistent administration of the plans.

The IAFF also continued to strengthen its Pension Reserve Fund which was created in Fiscal Year 2022. The fund now holds more than one (1) year of minimum required contributions, helping protect the pension plans and the International from unexpected increases in contribution requirements, as has happened in the past. Maintaining cash in a designated pension reserve, rather than relying solely on pension credits, improves flexibility and supports long-term pension stability. This proactive approach helps the IAFF prevent the need to take out multi-million dollar loans to make annual pension payments, as was unfortunately necessary in 2018.

Investment oversight has also remained disciplined. The Office of the GST has worked with Investment Performance Services (IPS) to maintain approved asset allocations, fulfill capital calls, monitor performance, and ensure that investment decisions are made consistent with policy. Investment gains contributed significantly to reserve growth and overall financial stability.

LOCAL UNION FINANCIAL REPORTS AND AFFILIATE ACCOUNTABILITY

Improving Local Union Financial Report compliance has been one of the most important affiliate accountability initiatives during this period regarding Local compliance with the IAFF Constitution & By-Laws. When we took office in 2021, only about 3% of locals were in compliance with the constitutional requirement to submit these reports. Through focused outreach, support from District Vice Presidents, staff follow-up, training, revised forms, and direct assistance, compliance increased dramatically to approximately 50%. Although not perfect yet, that progress is impressive and recognized.

The reports have become more than a compliance document. They are a practical tool for transparency, early identification of financial concerns, and education for local leaders. These reports not only create transparency, but they ensure locals are financially strong. While completing their Local Union Financial Report, several locals have discovered theft or fraud and were able to act on that discovery. GST Operations staff review submissions for required signatures, active EIN status, recent tax filings, best-practice indicators, dues amounts, operating results, and consistency between revenue, expenses, and changes in net assets. When issues are identified, staff contact local leaders and work with them to correct errors, answer questions, and help strengthen local financial practices.

A renewed outreach initiative launched in 2026 focused on affiliates that had never submitted a financial report to the Office of the GST. Within days, dozens of locals responded, and multiple reports were submitted almost immediately. A new training video featuring GST staff and the IAFF’s independent auditor was posted to the Secretary-Treasurer resource page to guide affiliates through the process. These efforts are another example of the value of combining accountability with practical support.

AFFILIATE ASSISTANCE, FIDUCIARY EDUCATION, AND LOCAL SUPPORT

The Office of the GST has substantially expanded direct assistance to local secretary-treasurers and affiliate leaders. Historically, local secretary-treasurers received limited direct support from the International. That gap is being closed through virtual meetings, hands-on problem solving, online resources, sample policies, training programs, direct outreach, and old-school boots on the ground travel.

Two (2) online training initiatives have been especially successful. The Introduction to Fiduciary Responsibility course has reached hundreds of local leaders, and the Secretary-Treasurer Essentials course attracted more than 435 registrations within its first two (2) months. These courses provide practical guidance on fiduciary duties, financial controls, secretary-treasurer responsibilities, and the importance of transparency. They also reinforce that a local union with sound financial practices is better positioned to fight for wages, benefits, staffing, safety, and the rights of its members. We have created an online library with sample templated financial policies to encourage locals to adopt formal guidelines on topics such as credit cards, expense reimbursements, investments, document retention, budgets, and audit committees. These programs were created by the Office of the GST with the assistance of multiple experienced secretary-treasurers from across the IAFF – their input has been invaluable in developing and refining these offerings.

Tax-exempt status assistance remains one of the clearest examples of direct affiliate assistance. The Office of the GST has helped hundreds of locals restore revoked EINs, maintain tax-exempt status, and understand ongoing IRS filing requirements. Recent IRS process changes now require many locals to complete a full reinstatement, including Form 1024 and a filing fee. To reduce the burden, GST staff developed a streamlined process that guides locals through each step and helps them avoid substantial outside professional fees that can cost thousands of dollars.

The Office of the GST also continues to assist locals facing theft, fraud, embezzlement, and financial mismanagement. Staff helps locals identify the extent of a problem, report to law enforcement when necessary if it cannot be handled at the local level, pursue restitution, file Labor Organization Bond claims, rebuild internal controls, and adopt stronger financial policies all in order to gain back member trust. In several cases, this work has helped locals recover substantial funds, avoid penalties, and emerge financially stronger. In other cases, members have had felony arrests due to embezzlements. These efforts to assist Locals are among the most direct and meaningful services the IAFF provides to affiliates during times of crisis.

CONVENTIONS AND CONFERENCES

The IAFF’s conferences and conventions remain essential opportunities to train leaders, listen to affiliates, and share the work being done on behalf of members. The Office of the GST has participated in IAFF district conferences, state and provincial association meetings, the US Legislative Conference, the Canadian Legislative Conference, and the Strive for Excellence conference, to name a few. These events allow the GST team to explain IAFF finances, discuss fiduciary responsibility, provide secretary-treasurer education, and connect directly with affiliate leaders.

The inaugural Strive for Excellence conference was a success. The combination of hands-on training, union leadership education, and direct support from GST staff created meaningful engagement with local leaders. GST Office Hours allowed over two dozen locals to meet one-on-one with staff and instructors to address specific issues to ger the assistance they need. Workshops were well attended, and many participants stayed after sessions to seek additional guidance.

Preparation for the 58th IAFF Convention has required significant coordination among the Office of the GST, the General President’s Office, General Counsel, and General Administration Division staff. This work includes sending convention calls and reminder communications, resolution processing, credentialing, registration testing, and support for delegates, alternates, and guests. Staff have also prepared certificates for locals celebrating 25, 50, 75, and 100 years of continuous affiliation. These behind-the-scenes efforts are critical to a successful Convention.

HUMAN RESOURCES, HEADQUARTERS CULTURE, AND EMPLOYEE SUPPORT

Human Resources (HR) has supported organizational growth while strengthening workplace culture, employee benefits, and operational continuity. Since August 2024, approximately 20 employees have been hired or scheduled to begin employment, while 29 employees, including Financial Corp and E-18 employees, have retired or left the IAFF. HR has led recruiting, onboarding, training, employee relations, benefits administration, and day-to-day personnel support during a period of significant organizational activity.

The management training initiative was a major workplace culture endeavor. Over approximately two (2) years, the project helped create a more collaborative workplace, improve communication, and establish a statement of organizational values. Leadership training continues for newly hired and promoted leaders, and refresher sessions are planned for managers at the deputy director level and above.

An Employee Recognition and Rewards Program was introduced as part of this culture-building work. The first employee recognition event was well received, and awards such as the Colleague’s Choice Award, Ember Award, and Executive Excellence Award formally recognized employee contributions. HR also launched the quarterly newsletter to maintain communication and highlight employee milestones.

Employee benefits remain an area of active management. The IAFF Health Plan has continued to be monitored closely in response to the steep rise in national medical cost inflation trend rate. Our broker, Willis Towers Watson, continues to strengthen the IAFF’s oversight of insurance services, improved visibility into coverages, and supported future planning. The IAFF also achieved savings by increasing the insurance stop-loss threshold and continues to evaluate cost drivers, prescription rebates, and plan trends to preserve a strong, cost-effective, quality PPO health plan for employees and retirees.

INSURANCE, BOND RENEWAL, AND RISK MANAGEMENT

The IAFF made significant progress in insurance and risk management. Following a comprehensive RFP process and Executive Board approval, the IAFF transitioned from Schoenfeld Insurance to Willis Towers Watson as broker for IAFF insurance coverages, including the Labor Organization Bond. This transition strengthened oversight, improved support for affiliates, and laid the groundwork for a centralized portal where policies, correspondence, and related communications can be maintained.

The Labor Organization Bond renewal was especially important. When the existing broker proposed a significant increase in the IAFF-paid portion of the premium, the Office of the GST initiated an RFP process with support from the Executive Board. The IAFF transitioned to Willis and entered into a one-year policy term for the bond to allow further evaluation and negotiation for a longer-term renewal. There was no lapse in coverage for affiliates, and the Office of the GST communicated the change and worked directly with locals needing assistance with additional bond coverage.

Bond coverage is not merely an administrative requirement. It is a critical protection for locals facing fraud, theft, and misappropriation. The Office of the GST’s work to strengthen bond administration, educate locals about appropriate coverage levels, and support bond claims reflects the IAFF’s broader commitment to protecting member dues at every level of the organization.

PRODUCTION CENTER AND OPERATIONAL EFFICIENCY

The Production Center continues to deliver operational value and cost savings for the IAFF. By printing materials in-house for trainings, district conferences, PEP events, HAZMAT classes, and other programs, the IAFF reduces outsourcing costs and gains the ability to update materials quickly. Print-on-demand capabilities reduce waste and allow staff to tailor course materials without placing large, expensive commercial orders. The Production Center prints an average of 400,000 pages per month.

Since the last Convention, the Production Center has received new industrial printers. During the RFP process, the new machines were brought in at a reduced monthly lease rate. Other vendor reviews also produced savings, including lower supply and shipping costs through the use of local suppliers and improved shipping practices.

The Production Center also responded effectively to operational challenges, including the aftermath of a flood at headquarters that temporarily disrupted printing operations. Staff prioritized repairs, restored production, and continued mail and shipping functions without significant interruption.

GENERAL ADMINISTRATION, SYSTEMS, AND DATA MODERNIZATION

The General Administration Division has continued to modernize systems and improve member-facing and affiliate-facing operations. Staff have supported roster updates, membership records, accounts receivable, reception, ERP functions, convention credentialing, registration setup, and data reporting. The Division maintains records for more than 3,600 active affiliates and more than 366,000 active and retired members.

The Division has also advanced work on Amalgamated Locals by establishing data structures, business objects, and reports to track associated departments. Data previously maintained elsewhere has been imported into the IAFF database as the official source going forward. These improvements provide more reliable information to staff, DVPs, and affiliate leaders.

Nearly 96% of locals now participate in the auto-draft program, creating a more efficient and accurate per capita payment process. Monthly reports for state and provincial associations, improved roster tools, and enhanced online resources continue to strengthen operational support for affiliates. These system improvements may not always be visible to members, but they are essential to running a modern, growing International Union.

LEGISLATIVE AND POLITICAL ACTIVITIES

The IAFF’s strength is not limited to finances and operations. The organization has achieved major legislative and advocacy milestones, including WEP/GPO repeal through the Social Security Fairness Act, passage of the HONOR Act which expanded PSOB benefits for members with occupational cancer, and continued bipartisan engagement on issues important to fire fighters and EMS workers. These accomplishments demonstrate the IAFF’s ability to unite political advocacy, organizing strength, and member-focused policy priorities.

The Legislative Conference and Canadian Legislative Conference gave IAFF leaders and members the opportunity to advocate directly for the issues that affect their work, safety, benefits, and families. The Office of the GST has also continued to emphasize the importance of participating in the broader labor movement, maintaining relationships across the House of Labor, and supporting affiliates as they engage in their communities.

MAJOR MILESTONES AND ACCOMPLISHMENTS (SCOREBOARD)

CONCLUSION

The IAFF is a growing, resurgent, and financially stronger International Union – more than ever before. The accomplishments outlined in this report reflect a consistent commitment to protecting member investments, strengthening affiliate operations, supporting local leaders, investing in programs and services, holding each other accountable, and preparing the organization for a successful future, both financially and politically. .

The Office of the GST has focused on building the foundation necessary to meet the expectations of members across both nations. That foundation includes strong finances, transparent reporting, effective procurement, modern technology, direct affiliate assistance, pension stability, risk management, and fiduciary responsibility. Each milestone represents progress toward a stronger IAFF and a more secure future for fire fighters, EMS workers, retirees, and their families.

I would like to thank the Office of the GST which continues to be a well oiled machine, GP Kelly for his partnership, the great staff in the Office of the GP, and the District Vice Presidents for assisting in making our innovations become a successful reality for our great IAFF.

Thanks to my family for the sacrifices they make every day. They are an instrumental part of my success as GST.

As I close, please join me in recognizing all of our sisters and brothers who made the ultimate sacrifice. I have had the sad privilege of travelling to and attending far too many LODD funerals. It is one of the toughest things we do as union leaders, but it is one of the most important nad impactful for our fallen members and their families.

In solidarity – Unite, Fight, Organize