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1983 Financial Report: ‘Unanticipated Success’
1983 Financial Report: 'Unanticipated Success J By WILLIAM
J.
EDWARDS, Treasurer
A
s treasurer of the American Pharmaceutical Association, I am pleased to inform you that the Association's 1983 financial statements, as audited by the national accounting firm of Ernst & Whinney, show that the Association is in excellent financial condition. We have completed fiscal 1983 with some of the best results from operations the Association has enjoyed. With income of $4.5 million and expenses of $3.7 million, we were able to contribute some $660,000 to APhA's general reserves. APhA staff constantly consults with our auditors and institutes recommended con troIs to strengthen internal procedures. Also, the accountants periodically meet with staff to discuss financial conditions and strategy as well as changes in accounting practices.
unusual and unanticipated success in the investment market and also to the refund of taxes which cannot be relied upon in the future. Consequently, while the APhA Board of Trustees and the Association's business management always strive to operate "in the black," I cannot promise that any future operating surplus will be of the magnitude achieved during 1983.
Fiscal Health
A
Financial Strategy
T
he financial strategy of the Association is to fund programs and activities with current income- that is, dues, subscriptions, registration fees and the like-so that on an annual basis, operation revenues equal expenses. In addition, we plan for income from investments to provide for
APhA Treasurer William J. Edwards presented the 1983 financial report before the first session of the House of Delegates, Monday, May 7, 1984. Edwards, a community pharmacist practicing in Galves ton, TX, has served APhA as a member of the Board of Tru stees since 1975, Chairman of the Board of Tru stees , Speaker of the Hou se of Delegates, and President of the APhA Academy of Pharmacy Practice, among other key positions. 58
maintenance of the value of these investments, that is, to offset inflation, and also to provide for a cushion against either some future shortfall of income or unbudgeted, but necessary, expense. Of the 1983 surplus, almost $600,000 was investment income. High interest rates during the year resulted in an approximate 15% increase in the Association's investment into me over that realized in 1982. Most of the surplus remainder came from the refund of federal taxes on unrelated business income paid in prior years. The 1983 surplus was the largest in the Association's recent history. You should understand, however, that it was attributable primarily to
s of December 31, 1983, the balance sheet reflects the Association's fiscal health with cash, certificates of deposit, treasury notes and bonds, and other liquid investments totaling almost $5.5 million. APhA's investment in our building, its furnishings, and other equipment is $1. 9 million, net of depreciation. On the other side of the equation, APhA's liabilities include $410,000 in accounts payable and just under $1.5 million in deferred income, mostly 1984 dues and subscri ptions received in 1983. The financial results of 1983 reflect many things-the strong level of support from the membership, the careful planning by the Board of Trustees, the prudent cost control efforts of the staff-all combining to best benefit the Association and its members. With the substantial improvement in APhA membership recruitment and retention experience, which President Bectel has just reported, I look forward to the Association being able to report at next year's Annual Meeting that we have had another financially successful year in 1984. Thank you. 0 American Pharmacy Vol. NS24, No.7, July 1984/450
J.
EDWARDS, Treasurer
A
s treasurer of the American Pharmaceutical Association, I am pleased to inform you that the Association's 1983 financial statements, as audited by the national accounting firm of Ernst & Whinney, show that the Association is in excellent financial condition. We have completed fiscal 1983 with some of the best results from operations the Association has enjoyed. With income of $4.5 million and expenses of $3.7 million, we were able to contribute some $660,000 to APhA's general reserves. APhA staff constantly consults with our auditors and institutes recommended con troIs to strengthen internal procedures. Also, the accountants periodically meet with staff to discuss financial conditions and strategy as well as changes in accounting practices.
unusual and unanticipated success in the investment market and also to the refund of taxes which cannot be relied upon in the future. Consequently, while the APhA Board of Trustees and the Association's business management always strive to operate "in the black," I cannot promise that any future operating surplus will be of the magnitude achieved during 1983.
Fiscal Health
A
Financial Strategy
T
he financial strategy of the Association is to fund programs and activities with current income- that is, dues, subscriptions, registration fees and the like-so that on an annual basis, operation revenues equal expenses. In addition, we plan for income from investments to provide for
APhA Treasurer William J. Edwards presented the 1983 financial report before the first session of the House of Delegates, Monday, May 7, 1984. Edwards, a community pharmacist practicing in Galves ton, TX, has served APhA as a member of the Board of Tru stees since 1975, Chairman of the Board of Tru stees , Speaker of the Hou se of Delegates, and President of the APhA Academy of Pharmacy Practice, among other key positions. 58
maintenance of the value of these investments, that is, to offset inflation, and also to provide for a cushion against either some future shortfall of income or unbudgeted, but necessary, expense. Of the 1983 surplus, almost $600,000 was investment income. High interest rates during the year resulted in an approximate 15% increase in the Association's investment into me over that realized in 1982. Most of the surplus remainder came from the refund of federal taxes on unrelated business income paid in prior years. The 1983 surplus was the largest in the Association's recent history. You should understand, however, that it was attributable primarily to
s of December 31, 1983, the balance sheet reflects the Association's fiscal health with cash, certificates of deposit, treasury notes and bonds, and other liquid investments totaling almost $5.5 million. APhA's investment in our building, its furnishings, and other equipment is $1. 9 million, net of depreciation. On the other side of the equation, APhA's liabilities include $410,000 in accounts payable and just under $1.5 million in deferred income, mostly 1984 dues and subscri ptions received in 1983. The financial results of 1983 reflect many things-the strong level of support from the membership, the careful planning by the Board of Trustees, the prudent cost control efforts of the staff-all combining to best benefit the Association and its members. With the substantial improvement in APhA membership recruitment and retention experience, which President Bectel has just reported, I look forward to the Association being able to report at next year's Annual Meeting that we have had another financially successful year in 1984. Thank you. 0 American Pharmacy Vol. NS24, No.7, July 1984/450