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A Report on APAP’s
Fiscal Health
By Dana Sayre-Stanhope, Ed.D., PA-C
Chair, APAP Finance Committee and
APAP Secretary/Treasurer
The advent of spring means that, once again, the Finance
Committee convened for its annual meeting to evaluate APAP’s
current fiscal situation and build a budget for the coming year. The
committee has had some changes this year to its membership as Bill
Kohlhepp resigned to focus on his NCCPA responsibilities and Mary
Ann Laxen from the University of North Dakota PA Program joined us
for the first time.
Following the meeting, I can report that overall the
Association continues to be in great shape, and APAP remains “in
the black” with a continuing improvement in its reserves. Second
quarter figures indicated that APAP’s unrestricted assets increased
by nearly $500,000, as a result of the receipt during this fiscal
year of CASPA revenue from the 2003-4 cycle. The 2004 Educational
Forum was an unqualified success, netting approximately $60,000 for
the Association. And once again, the Faculty Development and Research
Institute workshops were very successful in contributing to our members’
and the Association’s growth. Thanks to all the faculty and staff
who contributed to these achievements.
This year the members of the Finance Committee focused
heavily on the fiscal issues connected with APAP’s transition
to independent management. We reviewed budgets for both 2006 and 2007
to ensure that they appropriately reflected both one-time costs associated
with our move and ongoing costs after the move. The committee met
with Raffa Associates, which was ultimately approved by the board
to be APAP’s new financial management company, beginning this
fiscal year. The Finance Committee and the board are deeply indebted
to Bob Johnston who has served as the Association’s chief financial
officer for many years and whose advice during this transition period
has been invaluable.
Puerto Rico was a source of much discussion as the committee
sought to find a way to extend the meeting for an extra two or three
days. Alas, we couldn’t manage it, but we are still looking forward
to what will be a dynamite meeting in a spectacular setting! A review
of the anticipated costs shows that they are remarkably similar to
those for “stateside” meetings, a pleasant surprise to several
of us.
The committee considered a number of issues at great
length, and I would like to share these with you.
Revenue
Not surprisingly, the committee spent a great deal of
time discussing CASPA, which continues to be a huge success while
generating more revenue for the Association than initially anticipated.
This has provided a huge boost to the bottom line of APAP’s budget.
Because of the hard work of those responsible for CASPA’s success
— and that includes all the programs participating in CASPA that
remained steadfast during the service’s sometimes difficult growth
process — these funds will enable APAP to move to independent
management without dipping into its reserves.
In October 2001, the membership voted to allow dues
to be increased by a maximum of 4 percent each year, in line with
inflation. Based on the rise in the Consumer Price Index, the committee
will recommend a 3 percent dues increase for 2005-6 to $2,875, or
$100 per program. This process will sunset with 2006-7 fiscal year,
but appears to be working well for the Association — and for
me as a program director in budgeting annual dues. The members of
the Finance Committee and I would appreciate any feedback you wish
to offer as we will be considering whether to recommend continuation
of this policy at our meeting in November.
Publications continue to provide a steady but small
revenue stream for the Association, with PACKRAT sales ahead of last
year’s at this point. Directory sales have been stable for several
years and seem to be holding, while royalty from the recertification
book seems to be picking up slightly.
Expenses
The largest increase in expenses for the coming year
will be administration costs. Salaries, benefits, consulting fees,
financial, and IT services have been included in the upcoming budget
for the first time. Previously all of these items were subsumed in
APAP’s management contract with the AAPA. Also appearing for
the first time will be such items as lease agreements, capital equipment
expenses, software and hardware, and last — but certainly not
least — rent for APAP’s own space.
The committee is pleased to be able to recommend an
increase in the Association’s contribution to the Physician Assistant
Foundation, which provides support for one scholarship per year.
The Finance Committee will deliver a very healthy budget
to the board for its approval at the May board of directors meeting
in Orlando. 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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