Prudent and Appropriate

prudent and appropriate by G,rover ~.

Bowles

1-

would like to comment briefly on - theaudi t report for the year ended December31,l968. _The first page is the auditors~ un-qualified short-form report (see page 325). I -have :read this report many times in the Association's annual ' audit report asweli as the reports of auditors for other organizations. Generally, it means that our auditors have accumulated sufficient competent iIifonnation through inspection; observation; inquiries and confirmations to afford a reasonable basis- for an opinion regarding the financial statements under examination. Our auditors were sufficiently satisfied with our internal controls and procedures to render an unqualified report. To attempt to explain this opinion in detail would - be presumptuous. Much is _being reviewed by experts for revision of the terminology of this statement. Some years ago a member of the public relations council for the American Institute of Certified Public Accountants said. Too many individuals _haven't the foggiest idea of what the certificate means, and if I may say so, I think the time is ripe for its revision in laymen's language, and in the light of changed circumstances in the past 30 years.

A Forbes editorial said in partA!I these certifications usually bear the phrase "according to generally accepted accounting principals," a phrase which is now coming to be generally accepted as damned mean~ ingless.

Hopefully in the near future the \ general intent of our a:uditors can be b~tter -communicated.

The next page, Exhibit A (see -page 326), is the combined statement of assets, _"liabilities and fund balances. This is :another way of presenting a balance sheet.- -In princIple, little _difference exists between this {OIm -of balance sheet that is suitable for a nonprofit organization arid th~t which is suitable for a commercial organization. Details respecting the assets are shown in OIie part, and details respecting liabilities and membership equity are in another part of the statement. As you can see, th~ balance sheet is divided -into sections. Instead of showing all our assets under one heading, each section of the statement -is made self-balancing. These sections can be divided into four distinCt -classes. In the first class, general funds, are those assets that are received without restriction. These funds -are applied to offset the current costs that arise -from operations of the year during which they are received. _ The cash balance-- of $336,605.19 ' includes over $260,000.00 in certificates of _ deposit. All audit reports combine certificates with cash because in reality that is what they are. We have immediate use of the cash invested in certificates if necessary. Currently our certificates earn six percent or six and onequarter percent, depending on the individual rate negotiated at the time of the purchase. Our purchases are spaced so that certificates become due at different dates in order to have cash readily available. Accounts receivable include(1) APhA Foundation-$56,804.53. The Foundation is regularly billed and promptly pays tile balance due to' the general funds.

(2) -Affiliated state associations$48,772.97. This receivable represents APhA dues collected by state associations in their joint billings. To assure faster membership service, their records of receipts are forwarded here prior to forwarding of funds and the receivable is developed from these records_ (3) General accounts receivable$24,508.55. From sales of the Health Education Center Service subscriptions, advertising, reference standards and other -items the Association has available for sale. These receivables are current and necessary management controls are available to learn of any delinquent account promptly. Our general re~ ceivables continue to increase in number and consequently in total dollars. The procedure for requesting advanced payment on orders of . under $10.00 has been waived to members.

Secudties are up almost $12,000 over 1967. The prepaid expenses are recurrent expenditures for future ' benefits. These items are - asset classifications and are charged to future operations on the basis of measurable benefits such as payments in connection with this meeting, postage -and printing supplies, or on a time or period-charge basis, such as insurance .. The Deferred National Formulary costs are the 'last asset shown in this general fund section~ This amount represents that portion remaining of the total cost of printing the 12th edition four years ago. The cash outlay four years ago benefited each of the five years of the current edition period and therefore is deferred over that entire period. Each year is charged one-fifth of the total cO$t of printing. -

Before I continue with a discussion of this state~ent, I would · like to mention one area I thought about since early last year when I was at headquarters for a salary planning meeting. While every other part of the Association's assets and its prosperity figured in the balance sheet, that of the staff did not. It seemed to me to be an irrational process that this important asset was one which had no place whatever in the Association's balance sheet. I think this is further reinforced by the fact that the effective cost of that asset is continually rising. The impact of additional Federal fringe benefits, the additional fringe benefits offered voluntarily and higher salaries represent a continuing increase in the effective cost of manpower to the Association and yet the cost is never represented as being a continuing factor. It is there as an income and expense factor written off year by year and in fact never perpetuated. I hope sincerely that the accounting profession will tum its attention to this matter. It is necessary to bring home to management the need for conservation of this important asset within their organizations. The accounts payable are basically amounts due on open account for the purchase of commodities or services used in the regular course of activity. Two exceptions are a $25,000.00 contribution made to the APhA Foundation to permit the Foundation to become more active and amounts expended for additional renovations made in the headquarters building to increase usable office space. The deferred income represents revenue received before it is earned. As a result of a November 1968 billing to members for 1969 dues, we received $288,197.40. As I discussed last year, the National Formulary deferred income of $126,853.36 represents that amount remaining from this year and previous years' sales to be transferred to income in 1969. Deferred Income-Other includes $69,012.75 received for 1969 subscriptions to our journals, and revenue in connection with this meeting. The second classification of funds on the ' balance sheet is the fixed assets. The practical effect of a purchase of such assets is that an amount of investment equivalent to the cost of the asset is no longer available for current , use. It is impounded as investment in fixed assets. Accordingly, it is good accounting policy to transfer the amount out of the general fund or investment account to a special acCount that is designated investment in fixed assets account. Last year when I discussed the rea-

OLIVER

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GRAHN

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16, 1969

14R. GROVER e. BOWLES, TAEASUREA AMtll1 CAN I'HAAMACEUT I CAL Assoc I ATI ON WASHINQTOII, D.C. OUR SIAl I

HAvt EXAMINtD THt COMBINED STAUMENT Dr ASSETI,

BALANCES AT DECEMBER

31, 1968,

LIABILITIES AND 'UND

0' THE AMEAICAN PHARMACEUTICAL ASSOCIATION AND THE

RELATED STATEMENTS 0' INCOME AND EXPENSES FOA THE TEAR THEN ENDED.

M'I'

EXAMINATION

WAS MADE III ACCORDANCE WITH GENEAALLY ACCErTED loUD I T I NG STANDARDS, AND ACCORDI NQLY I NCLUDED SUCH TEITS 0' THE ACCOUNT I NG AECOADS AND SUCH OTHEA AUDI TI NG PROCEDURES AI I CONSI DEAED NECESSA"Y

I II THE C I RCUMSTANC[5.

IN MY OPINI,ON, THE ACCOMPANYING COMBINED STATEMENTS 0' ASSETS, LIABILITIES, AND 'UND BALANCES,

AND 0' INCOME AND EXPENSES PRESENT FAIRLY THE 'INANCIAL POSITION

0' THE AMERICAN PHARMACEUTICAL ASSOCIATION AT DECEMBER OPERATIONS 'OR THE YEAR THEN ENDED,

31, 1968,

AND THE RESULTS 0' ITS

IN CON'ORMITY WITH GEHERALLY ACCEPTED ACCOUNTING

PRINCIPLES APPLIED ON A IIASIS CONSISTEN T WITH THAT 0' THE PRECEDINQ YEAII.

OL I VER T.

GRAHN eERT I , I ED Pun I C ACCOUNTANT

At right is the audio tor's letter of trans· mittal.

sons for not depreciating our headquarters building several members commented that if we did depreciate, a portion of each members' dues would be for the purpose of building up a replacement fund. I question the desirability of building up a fund for the replacement of existing facilities. Each generation should be required to provide its own facHities, and this should be done only when a capital asset is discarded. The next column, Permanent Funds, is the third class of funds. These are similar to endowment funds. Endowments are of two kinds. The income from the endowment may be made available by the donor without restriction as to the purpose for which it may be used. Such an endowment is termed to be unrestricted or generaI. Income from the endowment is then similar t6 dues receipts or any of the several income-producing activities of the Association. Today, even though the restrictions of some of our endowments are now outside the reasonable intent of the donor, the income is reinvested in the endowment. In this way, we have an added hedge against the future. Permanent Funds of the Association that fit into this category of endowment are the Endowment, Centennial, Life Membership, Research, Franklin M.

Apple, George Decker, George and Lillian Judisch, and Leasure K. Darbaker Funds. Other of our Pennanent Funds specify that the income from the endowment may be used only for a specific purpose. These are termed restricted endowments. Included in this type of endowment are the Ebert Legacy and the F.B. Kilmer Funds. You are all aware of the Ebert and Kilmer awards. All of our permanent Funds are held in a common fund without segregation of specific assets to specific endowments. Losses incurred in investments are chargeable in appropriate proportions among all of the endowments and gains are likewise so distributed. The income from the assets is pooled and is apportioned among the endowments in such manner as may be proper. The pooling procedure tends to equalize among all the Permanent Funds the investment risk and the income return. Pooling also permits maximum use of the funds. If assets were invested individually there would be an accumulation of small amounts of unproductive cash because of the impracticability of always investing the full amount of an endowment. Investments of the Permanent Vol, NS9, No.7, July 1969

{

,

325

"

Funds are included ' in Schedule 1 (see page 327) of this audit report. The fourth class of funds are trust funds, grants and custodial funds. These are funds where neither the principal nor the interest belong to the Association. The Trust Funds are those of the Remington Medal Trust Fund. The last column includes funds of the Academy of Pharmaceutical Sciences which must be included in our statement because of our Constitution and Bylaws; the remaining portion of a P.u blic Health Service grant awarded to the . Academy of Pharmaceutical Sciences in the name of the Association, and the final transaction to close out the grant, from the American Federation for Pharmaceutical Education, which ended during 1968. Additional grouping of items may be made when occasion requires. For example, when we receive funds from the Office of Economic Opportunity, a classification of these funds will be set up on the balance sheet. This statement overall shows the financial position of the Association on a certain day, December 31, 1968, by listing the monetary values of all assets and the amount of all liabilities. The difference between these two represents fund balance or net worth of the Association on a particular day at which the statement is prepared. The balance sheet also shows the membership's "proprietary" interest in the fund balance. The accounts shown are based on the assumption that the Association will continue indefinitely and therefore the fund balances are in no way indicative of the amount that might be realized if the Association were to liquidate immediately. Our total Fund Balance at December 31, 1968, is a very favorable $1,872,407.12. However, only the General Fund Balance of $175,851.16 is available for current operations. We could do much more if this amount were larger. Under modern financial conditions the future cannot be left to itself. We must plan ahead. It is through this House of Delegates that the Association's policy and positions are formulated. As a result of your suggestions programs are planned, continued and terminated. A successful program cannot be ended when you decide another is now necessary. Additional funds are required to pay for the new program. In this era of rising costs, to plan for these new programs out of current funds now available is not possible. This is evident by just pointing out that the general fund balance of $175,851.16 represents only 13 percent of our total expenses for 1968. If 1969 costs continue to increase 326

Journal

COtoeINED STATEMENT

or

AMERICAN PHARMACEUTICAL ASSOCIATlClH ASSETS. LIABILITIES AND FUND BALANCES

GENERAL FUND

TOTAL

~

-: "1

EXHIBIT A

-

DECEMBER

rlXED ASSETS

illlli

' TRUST SPEC I AL FUNDS ~ AND GRANTS

500 06 $ 53 484 18 1 1172 99 45

1 1111

100

ei~ ~~ ;~

PAYABLE - GENERAL - To f'UNDs DEFERRED INCOME - DUES & SUBSCR I PT IONS - NATIONAL f'ORMULARY XII - OTHER

31, 1968

I

1 345 232 97

27 251 e8 42500

LIABILITIES

BALANCE - DECEMBER

PERMANENT ~

27~ ~~~ ~~

~

1, 1968

31. 1968

$11682502 $

CASH ACCOUNTS RECEIVABU SECUR I T I [5 - SCHEDULE 1 OuE FROM OTHER f'UNDS LAND AND BUILDINQS f'URNI TURE AND f'1 XTURES PREPAID EXPENSES DEPOSIT - AIRLINE DEFERRED Nf'XII COSTS

f'UND BALANCES BALANCE - JANUARY EXCESS OF I NCOME OVER EXPENSES - GENERAL f'UMD - EXHIBIT B EXCESS or I NCOME OVER EXPENSES - OTHER f'UNOS

~

140 000 6Ii

4&>990

40

11. 848 00

288 197

:2~ ~~ 36

Mt 733 R ---=-:...,,;;.:

8069 70

233 91

396 1J83 69

1 831 137 70

136 688 40

3~ :~ ~~

39 162 76

1 3115

: = 1 874 01

IS ; ~ 40 857 63

- - - " - - " - --~ ~ --li...5Q ~)

'1 872 407 12

Exhibit A

without an appreciable increase in income, the General Fund excess will be quickly depleted. The next statement, Exhibit B, (see page 327), most assuredly reflects our membership support for what was done and what will be done in the future. More than 53 percent of our total income came from the membership to support our programs and services. This exhibit is a comparative statement of income and expense for the current and previous years. We completed the year with an excess of general fund income over expense of $39,162.76 which is considerably less than the previous year. Other than for a prepayment to the APhA Foundation for our commitment to the Drug Standards Laboratory, the basic reason for this small excess was increased cost of operation. Fortunately, our membership growth continues to provide adequate income to meet the higher costs of We always established activities. have had as our goals the betterment of our profession and of public health. We have made our policy decisions on this basis and without regard to generating income for the Association. For example, our advertising policies discourage many advertisers from using our journals; the APhA-sponsored insurance programs are structured to offer maximum benefits at lowest cost to the insured-without inHating the rates to insure a payment to the Association, and many other methods used by other associations. The Journal of the American Pharmaceutical Association income again decreased. Lack of advertising

r

of the AM.ERICA~ PHARMACEUTICAL ASSOCI ~TlON

by the pharmaceutical industry was once again the reason. A small increase in the Journal of Pharmaceutical Sciences income was realized. This increase is due to larger page charge receipts. Payment of the page charge is not mandatory for acceptance of a paper for publication and the charge is waived if necessary. Our total advertising income for both journals, or rather the lack of advertising income, resulted in a net overall loss for the year. We, therefore, were not liable for any taxes when we completed our tax return on "unrelated business income," in compliance with the new Internal Revenue Service advertising regulations. Conversely, National Formulary income increased considerably. The distribution of the National F ormulary, 12th edition, was most favorable. At December 31, 1968, we exceeded our previous edition's distribution by over 6,000 copies. Since we always estimate our anticipated income conservatively, previous years' credit to income were understated. To adjust for these previous understatements of National Formulary income, additional income was credited 1968. M,iscellaneous publications income decreased during 1968. The new 1969 Handbook of Non-Prescription Drugs was not distributed until the end of 1968 and this income was deferred to 1969 to permit us to match this income with related expenses that were paid in 1969. Annual Meeting Income increased over previous years. Please note that expenses also increased and the net excess for the two years . is approximately the same. '

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EXH I BIT B AMERICAN PHARMACEUTICAL ASSOCIATION GENERAL fUND _ STATEMENT Of INCOME AND EXPENSES fOR THE YEARS ENDED DEweER 31, ]268 AND DECEMBER 31, 12:21

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AMERICAN PHA~CEUTICAL ASSOCIATION SECURITI ES - OEweER 31. 1968 COST CORPORATE STOCKS

YEAR ENDED R~,TlO TO DECEMBER 31, TOTAL ]268 INCOME

YEAR ENDED RATIO TO DECEMBER 31 ) TOTAL 1261 INCOME

~ DUES JOURNAL OF AMER I CAN PHARMACEUT I CAL Ass oC I ATI ON JOU RN AL OF PHARHAC EUTICAL SC IENCES NAT I ONAL fORMULARY MI SCELLANEOUS PuBLICATIONS HEALTH EDUCATION CEN HR SERVICE ANN UAL MEET I NG OTHER INCOME

726 169 35

53·05

g~~ §~

7·16 14·32 10 .27 ·91 1·90

~g; ~~; ~~

lfo 1 0 12 25 122

1

80

686 572

634 507 94 3 351

34 74 25 75

3~ ~~~ ~~

~ :~~

100.00

114 979 31

~~ l1A 1 222

m~~

~ §~ 382

53 ·12 7 ·90

1~: §6

2.11 2.04 8 . 96

~

05

100.00

I II ,61 11 98 382 84

1 .44 7. 61 2.49

~ 46 268 24 925 84

BOARO OF TRUSHES OFFICE OF THE [XECUTIVE DIRECTOR AOMINISTRATIVE SERVICES D,V,S,ON BUSI NESS D,V,S,ON COMMUNICATIONS D,VISION LEGAL DI VI SION MEMBERSH I P DI VI SION - RECOROS - PROHOT I ON SCI ENTI FIC D, V,S,ON STUDENT ACTIVITIES D,VISION EOUCAT I ON ACADEMY OF GENERAL PRACTI CE PHA RMACY ACADEMY OF PHARMACEUT I CAL Sc I ENCES COMMITTEE MEETINGS JOURNAL OF APHA JOURNAL OF PHARMACEUT I CAL Sc I ENCES NAT I ONAL fORMULARY APHA NEWSLETTER PUBLI C RnAT ION SERV I CE HEAL TH EOUCAT I ON CENTER SERV I CE ANNUAL MEET I NG SPEC IAL PROJECTS CONTRIBUTIONS TO APHA fOUNDATION DUES

EXCESS TO EXHIBIT A

8~

~: §~ 13 92~ 13

85 026 51 87 ~65 70

5~ ~~ ~§

17 441 36 2 ~78 20 32 ~2 37

~~ ~2~ ~§

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~1 ~~~ 6~ 1~ 2~1 26

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16K 2 621 10 11 8 336 41

~.38 · 57.

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.20 1.02 6.2 1 6. 40 4.05 ·52 1.27 .20 2.40 1.41 1.38

~~:;~ 5·97 2·90 1.04

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4~ ~~6 ~~ 15 720 36

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1~2 665 73

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11 11.13 5·93 3·20 1.16

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11

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AMERICAN SMELTING &. REP'ININQ CARR I ER CORPORA T I ON CERTAI N-TEEO PROOUCTS PREP'. CHRYSLER CORPORATION CORN I NO GLASS WARE GENERAL TILE &. ELECTRONICS CORI'. HARTFORD fl RE INSURANCE HEUBLEIN, INC. I NTERNATI ONAL Bus I NESS MACH I NES JOHNS MANV I LLE NORTHERN NATURAL GAS 5-6 PP'0. PDLAROI D CORP. PUBLIC SERVICE OP' NEW MEXICO RUTHRON SEABOARD COASTL I NE R.R. ST. LOUIS - SAN fRANCISO R.R. TELEDYNE, INC. TRANS WORLD AIRliNES, INC. UNITED AIRLINES U. S. fiDELITY &. GUARANTEE UNI VERSAL 0 1L PRODUCTS XEROX CORPORATION

CORPORATE BONOS NATURAL GAS P, PE 6~ 1986 So. CALI FORN I A Eo I SON

6 1/8f, 1991 SOUTHWESTERN BELL 5 3/Bf> 2006 TRUNKLINE CORP.6;\-f, 1986

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U.S. TREASURY BoNOS 2~ 9/15/76 / 67 U.S. TREASURY BILLS 3/13/69

Exhibit B

through our Legal Division during 1968. In addition to our direct expenses, we contributed to several state and local actions which were of importance to the entire profession. The late Hugo Schaefer pointed out several years ago the need for a larger legal division and that expenses would increase in the future. The increased expenses shown for 1968 are a result of those plans. We now have the flexibility and source material that a , national professional society should have in the legal area. I spoke previously of the Association's financial need to maintain its current members while new pharmacists are enrolled. All of you know the time, effort and money that is needed for this purpose. Our Membership Records and Promotion is no exception. To . continue our growth additional sums must be used in this area. Expenses for committee meetings include over $8,000 expended for the special House of Delegates meeting in Chicago. We found this meeting so productive that $10,000 was budgeted in 1969 for a similar meeting. To meet the needs of the scientific pharmaceutical community, additional pages in the Journal of Pharmaceuti-

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900

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1/8 20 1/2

6~ 700 1000 104 300 50 200

600 600 200

800 217 300 200

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45 600 23 219 12 787 12 900 22200 15200

4~

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1/11

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77

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Schedule 1

By putting our limited funds to work as soon as possible we were able to accumulate almost $10,000 interest from our certificates of deposit. This is the primary reason for the increase in Other Income. ou can see by a glance at the expenses that no new division or major activity was begun during 1968. Necessary current funds were not available in view of all the increased costs. In fact, spending in several areas was curtailed to help meet the major needs. Expenses of the Board of Trustees increased because the trustees supplemented Association staff commitments at various meetings; there were more Board meetings to discuss pressing problems, and a reallocation of expenses which were previously charged to the Office of the Executive Director was made. We decentralized our headquarters copying system and purchased three new machines located in accessible locations in the building. In addition, Some typewriters, print shop equipment and other equipment was purchased. This resulted in an increase in the Administrative Division expenses. Many of you are aware of the various services made available t-;'

400 200

~

U.S. TREASUR'f OBlI.GATIONS

~

lb8 83

1 225

SHARES

SCHEDULE 1

cal Sciences were printed, causing the Journars expenses to increase. I do not see any other items on this exhibit that need additional explanation. The last page of the audit report (see above) is a schedule of securities. During the year, we disposed of eight holdings and acquired seven new issues. Of the 2,2 corporate stocks there were 16 gains and six losses. The total Association investment portfolio, excluding certificates of deposits, increased over $28,000 to a new investment level of $603,533.51. Again, our stock investments outperformed both accepted stock averages. Particularly good acting stocks in the last quarter were Johns-Manville, Hartford Fire Insurance, American Smelting and Public Service of New Mexico, while Chrysler and Coming Glass were weak. , The bond market declined -slightly as a re$ult of the government's policy of credit restraints. However, if the policy is successful in reducing the inflation and inflationary expectations, bond prices eventually should benefit directly. ' Last year I concluded my report with the statement-"I am pleased to say our financial affairs are in ex(continued on page 865) Vol. NS9, No.7, July 1969

"

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327

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rebates as a prereqUisite Jor .obtaiI;ting consultative appointments. The committee wishes to remind pharmacists that the giving of such rebates (or discounts) is both illegal under medicare and violates the Code of Ethics.

9.2-The committee also wishes to report that the Association has enlisted the cooperation of the American Nursing Home Association in helping to discourage its membership from making such solicitations.

10. consumer affairs 10.I-A numher of bills have been introduced during this first session of the 91st Congress to establish at the Cabinet level a Department of Consumer ' Affairs. Both Houses of Congress have indicated that they will investigate the question as to whether or not all government agencies should be required to make public the information they utilized in deciding the award of private bids for a particular product or service.

10.2-If such public disclosure is re-' quired, pharmacists would have access to the Department of Defense procurement information pertaining to the quality of drug products produced by a number of competing pharmaceutical manufacturers. Such ' information would greatly assist the pharmacist in making professional judgments involved in his function as the patient's purchasing agent. , The committee therefore recommends that the Association support action by the Congress to require public disclosure of all testing information on the various products purchased by the federal government and other data collected in' the procurement process relating to the qualifications of the manufacturer.

10.3-The committee also wishes to alert the Association membership to a program initiated by the United States Chamber of Commerce to revitalize business-consumer relations. The committee urges pharmacists to participate in this program which is being implemented by local chambers of Commerce.

11. reclassification of drugs lI.I-At the present time there are two classes of drugs-those which must be dispensed by a pharmacist (Rx legend) and those which can be dispensed or sold by anyone anywhere ( o-t-c) . More than five years have

passed since the Associatiori introduced its proposai that the profession launch a unified campaign to amend the Federal Food, Drug and Cosmetic Act to provide the following categories of drugs-

1. to be dispensed at the request of a medical practitioner and renewable at the prescriber's discretion only; 2. to be dispensed at the request of a medical practitioner and renewable for a reasonable period at the pharmacist's discretion; 3. to be dispensed personally by a pharmacist at his professional discretion at the request of the patient, and 4. to be sold directly to the public without professional supervision or control.

11.2-The committee notes that the reclassification proposal has been endorsed by most of the state pharmaceutical associations, state boards of pharmacy and pharmacy leadership conferences. The committee also notes that, after five years of study, the National Association of Retail Druggists has not acted on this proposal in convention assembled. The committee believes that the profession has a social responsibility to bring about a more realistic classification of drugs. The committee also believes that a united effort will be required to accomplish this major task. The committee, therefore, urges individual Association members who will serve as delegates to the 1969 NARD convention to introduce and seek cJ)nsideration of a resolution supporting the APhA reclassification proposal.

12. intra professional-economic relations 12.1-The committee reviewed the efforts of the Association in assisting both employers and employees in developing and improving their employment relationship. The committee notes that several state associations have undertaken studies recommended by the Association.

12.2-The committee reviewed Association policy with regard to unionization. Pharmacists are discouraged from participating in or assisting any organization which can or may infringe upon their professional prerogatives or discretion in the practice of

pharmacy. The committee recommends that every pharmacist zealousy guard his right and opportunity to mold his own employment relation-i ship. 13. other subjects 13.1-ln addition to the subject discussed in this report, the committee reviewed and discussed a number of other subjects including minority groups in pharmacy, technicians, mailorder schemes, pharmacy consultants and the proposed omnibus drug legislation. Because these subjects fall under the jurisdiction of other standing committees, the committee is not submitting its comments. Gary R. Cornell Donald O. Fedder Sidney Simkowitz Blanche Sommers Donald J. Wernik, chairman

treasurer's report ( continued from page 327)

cellent order and that our records and financial practices are prudent and appropriate." While I can assure you that "our records and financial affairs are prudent and appropriate," I do not think our financial affairs are in excellent order. In adopting the 1969 operating budget, the Board of Trustees was faced with the choice of reducing some activities or being optimistic about anticipated income. Based on our first four months of 1969 operations, it appears that we will not realize anticipated income and even with some tightening of expenses, a deficit will result. The Association last increased its dues in 1960. Since then most of the national professional societies representing other health professions have had at least two substantial increases. Most of the state pharmaceutical associations have had one or more increases. I therefore rec'e ntly recom~ mended to the Board of Trustees that the Association increase its annual dues from $25 to ,$ 35 effective with 1970 dues billings. The $10 increase actually reHects less than the loss of real income available to the Association because of ,inRation. Perhaps this action should have been recommended two or three years ago-but the Board of Trustees has always been conservative and prudent about your money. I can assure you that in supporting this request you will be acting in the best interest of the profession, the Association and every individual member. • Vol. NS9, No.7, July 1969

.i \

365