Taking the Measure of the Association's Finances

Charles Brakhage, MPAS, PA-C
Secretary-Treasurer

Spring conjures up visions of flowers, blooming trees, warm showers, and the return of the songbirds. Here in San Antonio, all but the warm showers have arrived. Where PAEA is concerned, spring also means that a proposed budget for the next fiscal year has been submitted. The Finance Committee met in February. It welcomed back old members, Matt Dane Baker and Mary Ann Laxen, and new: Hank Lemke from the University of North Texas Health Sciences Center, Curt Stilp from Rosalind Franklin University, Chicago, and Alyson Smith from Midwestern University at Downers Grove, Illinois. This is my first report as the chair and I would like to thank Dana Sayre-Stanhope for her hard work over the past three years as the chair of this committee and wish her success as the president elect of the Association. Over the course of the committee’s two-day meeting, we were successful in building a budget for the coming year that I believe is appropriate.

First let me say that the Association is in the black and continues to do well. We have had good fortune in that our operating reserves continue to increase. We were able to move $500,000 from the reserves to our investments, a strategy that greatly improves our long-term fiscal position. We have also moved $75,000 to the PAEA Research Institute’s Endowment Fund, putting it well on its way to becoming a self-funding entity. As we close out the year, I am confident that we will be able to add to our investments, further strengthening our fiscal position.

During the Finance Committee’s meeting this year, Dennis Shine from our accounting firm, Raffa Associates, presented a thorough report on our position. The committee visited the issue of program dues and, after a dues freeze for one year, decided to propose to the board a $100 increase, raising the total to $2,975, in line with the membership’s approval of yearly increases not to exceed 4%.

CASPA continues to be the primary breadwinner for the Association. Applications are up by nearly 18 percent over last year, and revenue is $100,000 more than in the last fiscal year. Although it appears that this trend will remain positive into the next year or two, we must continue to implement sound fiscal policies and procedures to ensure that the Association continues in the strong financial position it currently enjoys.

There was a slight increase in revenue from publications this year. The interest from our investments is beginning to mount up and this year provided 4% of our total revenue. The Research Institute and the Faculty Development Institute workshops, although continuing to make a valuable contribution to the membership, remain only marginal in terms of positive revenue. The Annual Education Forum and the exhibits once again provided a modest return on our investment, although this amounted to about $10,000 less than last year in Puerto Rico. PACKRAT revenue is down very slightly, but we expect this year’s overall total to remain about the same as last year’s, once the spring revenue comes in.

The committee approved the funds to support the board's direction to hire another staff member to strengthen the Association's data and research capabilities. The Association expenses are running ahead of last year’s, mainly related to our stand-alone position. These include such items as salaries, taxes, employee benefits, rent, accounting services and fees, and depreciation.

The Finance Committee has developed a balanced budget to present to the board for approval in Philadelphia. Our Association is in good financial health. I look forward to seeing all of you in Philly.