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A Spring to APAP’s Finances
By Dana Sayre-Stanhope, EdD, PA-C
APAP Secretary/Treasurer
It’s a beautiful spring day here in the Midwest,
my first spring in this part of the country and first real spring
in years. The songbirds are busy building their nests, the Bradford
pear trees are blooming, and politics are building to a fall crescendo.
The advent of spring also means that the Finance Committee has met,
as we did in March, to evaluate our current fiscal situation and build
a budget for the coming 2004-2005 year.
Overall, I can report that the Association is in great
shape and, unlike our national fiscal situation, we anticipate remaining
in the black and seeing an improvement in our reserves this year.
Of course, nothing is without its challenges and there have been some
bumps along the way. Second quarter figures indicated that APAP’s
unrestricted assets decreased by $28,172, as a result of slower than
anticipated PACKRAT sales in the early part of the year. Because many
programs offer the exam to their students in the spring, there is
usually a significant increase in sales in the third quarter; we anticipate
that this will be the case again this year. The 2003 Educational Forum
was an unqualified success, no matter how you look at it. And once
again, the Faculty Development and Research Institute workshops were
very successful, both in their value to the participants and to the
Association’s financial situation. Thanks to all the faculty
and staff who contributed to these achievements.
Last year the Finance Committee, the board, and of course
the CASPA Advisory Committee focused to a great extent on CASPA. The
advisory committee in particular spent countless hours listening to
stakeholders, addressing concerns and suggestions, improving customer
service, and adding needed system enhancements. In large part because
of CASPA’s success, the Association is in a position to explore
independent management.
Our expenses have been running remarkably close to budget
projections as outlined in the 2001 business plan. Although specific
numbers occasionally need revision, the document continues to be an
enormous help in considering new expenses against long-term goals.
With the inclusion of some revisions suggested by the committee, a
balanced budget will be forwarded to the board for consideration at
its next meeting.
The committee considered a number of issues at great
length and I would like to share these with you.
Revenue
In October 2001, the membership voted to allow dues
to be increased by a maximum of 4 percent each year, in line with
inflation. The Consumer Price Index has risen by 1.7 percent since
this time last year, while Association administrative costs have increased
by 2.85 percent, with an anticipated increase of 9.4 percent. Based
on these numbers, the committee will recommend a 3.74 percent dues
increase to $2,775, or $100 per program over the current dues of $2,675.
CASPA continues to be a huge success and, for the first
time, will be generating revenue for the Association. This will provide
a big boost to the bottom line of APAP’s budget. While it seems
that we should be reaping the rewards for all of the hard work done
by the programs, advisory committee, and staff, these funds will require
careful shepherding to ensure that the Association has the resources
to continue its progress toward independent management.
Since APAP did not anticipate such an early return on
its investment in the central application service, it would be easy
to take our eyes off the goals that the Association has set for itself.
Furthermore, the Finance Committee and the board are committed to
supporting the other important APAP services, in addition to CASPA,
during transition. One of the committee’s discussions centered
around developing an operating principle to guarantee that a minimum
percentage of the anticipated surplus be added to the reserves, while
allowing for the investment of some monies in new Association projects.
In addition, new revenue sources were discussed in the form of business
opportunities and grants, and the committee is actively pursuing these.
PACKRAT continues to provide modest income and, although
much has been done to improve and streamline the product, sales remain
disappointing. With the advent of e-PACKRAT and as a result of Patrick
Knott’s communication with program directors last year to encourage
their use of the product, we are hopeful that we will see an increase
in sales of this great exam produced by Association members and staff.
Expenses
The Finance Committee and the board believe that the
work of APAP’s committees is increasingly pivotal for the long-term
success of the Association. As a result of our growth, it is more
important than ever that committees receive the resources necessary
to address their charges. In an effort to strengthen and support the
work of the committees, the Finance Committee will recommend that
funding be increased for several of the committees. This move will
facilitate conference calls and in some cases meetings besides those
that occur at APAP’s Education Forum and Semiannual Meeting.
Perspective on Physician Assistant Education
remains an invaluable publication to promote faculty research. APAP
continues to increase its direct support of this important resource,
while gradually relieving the University of Utah PA Program of its
considerable burden in publishing this journal. The Association owes
a tremendous debt of gratitude to Don Pedersen for this publication,
which started as a gleam in his eye, was birthed in his program, and
is now ready to leave the intensive care unit.
The finance committee will deliver a healthy budget
to the board for its approval at the June board of directors meeting
in Las Vegas. Details will be provided in your business meeting books.
I look forward to seeing many of you there and discussing these issues
in greater detail.
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