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APAP Finance Committee
Updates Membership on
March 2003 Meeting
By Patrick Knott, PhD, PA-C
APAP Secretary/Treasurer
I am sure that I share your concern for our country
during these times of political and economic uncertainty. I am hopeful
that our country will find its way out of some very difficult circumstances.
With these serious problems on our minds, it is sometimes hard to
focus on day-to-day issues, but I want you to know that the members
of the APAP Finance Committee are focused on the business of the Association,
and it is in good shape.
The committee met in Atlanta, Georgia, on March 7 and
8 to evaluate the economic status of the Association and to plan a
budget for the 2003-04 fiscal year beginning in July, 2003. We began
with a review of the second quarter financial reports, which show
that we are staying within our budget for the current year. Our net
assets had increased by $59,209 at the halfway point of the year,
primarily because of some additional income from two very successful
workshops — the Faculty Skills Workshop and the Research Workshop.
Thanks to all who put so much time and effort into these projects!
They were designed to be a great educational success, but when they
are a financial success as well, we get an extra bonus.
Our expenses have been running very close to budget
projections because of an efficient and hard working staff, and this
has also contributed to a healthy financial outlook. Our current ratio
(assets to debt) is 8:0, meaning that we have eight dollars of assets
for every dollar of debt. This is a very strong financial position.
In reviewing the goals in our five year business plan, we are ahead
of schedule in many categories.
I reported last year that our biggest financial potential
—and risk— came from our new CASPA service, and for this
reason, we would be devoting a majority of our time and effort into
making this a success. The CASPA Advisory Committee has been tireless
in its efforts to listen to participating programs, improve service,
add system enhancements, respond to applicant questions, market to
potential applicants, and collect important data for our Association.
Participant feedback has been very positive, and the last survey showed
that applicants were highly satisfied with the service they were receiving.
The CASPA Advisory Committee will be presenting more relevant data
and findings to the membership at the next meeting. Make sure you
let them know how much you appreciate their hard work.
As with most business ventures, hard work, good planning,
and strong customer service usually translate into better than expected
profits, and this is the case with CASPA. We are ahead of schedule
in paying off our initial start-up costs and may even see some net
revenue at the end of this fiscal year — two years ahead of our
projections. By next year, CASPA may be contributing significantly
to the Association’s bottom line and allow us to have the financial
resources to consider independent association management sooner than
the original 5-year plan suggested.
The finance committee will deliver a balanced budget
to the APAP board for its approval at the May board of directors meeting
in New Orleans. Details will be provided in your business meeting
books.
For now, rest assured that we are in good financial
shape and have a solid business plan in place to take us through the
next couple of years. Let’s hope that our nation can also be
successful in solving its problems.
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