Report of the treasurer — Year ended June 30, 1983

Report of the T r e a s u r e r - Year Ended June 30, 1983 Many of us may remember the early days of the College's existence~ when dues receipts were kept in a small lockbox and our printer occasionally extended credit to assure regular publication of our journal. Fortunately, the College has entered a new growth stage, as evidenced by the strong position reported in the accompanying audited financial statements for 1982-1983. A n u m b e r of variables have contributed to our vigorous standing, including a healthy investment environment, strong educational meeting registrations, and outstanding exhibit and advertising sales. Dues revenue increased as we reached new highs in membership, but actually declined as a percentage of total revenue. We created seven new programs to fulfill the educational and practice needs of our members, all the while maintaining a very "lean" and competent staff. Perhaps most important among the year's achievements was the completion of our new Headquarters building. The two-story, 30,474-square-foot building was designed specifically for our needs, and :is a convenient 10-minute drive from Dallas/Fort Worth Regional Airport. Our financial position permitted us to purchase the building outright, thus avoiding related interest expenses. I invite you to review these financial statements, and to forward your c o m m e n t s and questions to m y attention in care of ACEP Headquarters.

Richard L Stennes, MD, FACEP A CEP Secretary-Treasurer

Seidmanseid&manBI~) 420OIncerFJrsITwoDaJla~Texas75270(214}741-4200

August

I,

1983

American College of Emergency Physicians Dallas, Texas We have examined the balance sheet of American College of Emergency physicians as of June 30, 1983 and the related statements of activity, members' equity, and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements mentio1~ed present fairly the f i n a n c i a l p o s i t i o n of American College of Emergency physicians at June 30, 1983 and the results of its operations and changes in its financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

Cerli~ed PublicA¢countaots - O~ce ~ Throughout lhe Un,ted S{ales, l~temaIiona1[yBinder Dijker OI{e & Co

12:11 November 1983

Annals of Emergency Medicine

127

AMERICAN COLLEGE OF EMERGENCY PHYSICIANS BALANCE SHEET JUNE 30, 1983 ASSETS CURRENT: Cash and cash equivalents: Unrestricted (including certificates of deposit of $1,291,000 and commercial paper of $350,000) Chapter reserve (Note 3) Accounts and notes receivable, less allowance of $14,800 for possible losses Deposits and prepaid expenses TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT (Note 4) Less accumulated depreciation NET PROPERTY AND EQUIPMENT LIABILITIES A N D MEMBERS' E Q U I T Y CURRENT LIABILITIES: Deferred revenues (Note 5) Accounts payable Due to state chapters (Note 3) Accrued pension plan contribution (Note 6) Accrued compensation and other Current maturities of long-term debt TOTAL CURRENT LIABILITIES LONG-TERM DEBT, less current maturities TOTAL LIABILITIES COMMITMENTS (Notes 4 and 6) MEMBERS' EQUITY

$1 726 616 58 960 70 160 016 159 270 889 905

013 938 527 495 115 380 907

$1 499 602 294 92 163 53 2 707 33 2 740

901 190 798 500 982 735 106 579 685

2 3 2 $4

2 165 222 $4 905 907

See a c c o m p a n y i n g n o t e s to f i n a n c i a l s t a t e m e n t s .

STATEMENT OF ACTIVITY YEAR ENDED JUNE 30, 1983 REVENUES: Dues Educational programs Annals of Emergency Medicine (ANNALS) Services to associations and chapters Interest Total Revenues EXPENSES: Purpose I: Improve the emergency health care delivery system through the education of physicians, other health care professionals, allied health care workers and the general public Purpose II: Generate new information relative to emergency medicine via research Purpose III: Improve the quality of practice of emergency medicine through the development of standards and implementations of standards (ethical, socio-economic and competence in general) Purpose IV: Promote emergency medicine as a viable and recognized medical specialty Purpose V: Provide an organized structure through which the objectives of the association may be met Total Expenses EXCESS OF REVENUES OVER EXPENSES

$2 630 383 1 797 006 779 847 122 353 2I 1 966 5 541 555

2 556 017

447 429 351 621 1 109 436 4 464 503 $I 077 052

See a c c o m p a n y i n g n o t e s to f i n a n c i a l s t a t e m e n t s .

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Annals of Emergency Medicine

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STATEMENT OF MEMBERS' EQUITY YEAR ENDED JUNE 30, 1983 Designated Relocation

Land Acquisition

Operating

$169 415

$486 500

$ 432 255

--

--

Balance, at beginning of year Excess of revenues over expenses Reallocation of designated equity $

(169 415) --

$

(486 500) --

1 077 052 655 915 $2 165 222

See a c c o m p a n y i n g n o t e s to f i n a n c i a l s t a t e m e n t s .

STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1983 SOURCE OF WORKING CAPITAL: Excess of revenues over expenses Items not requiring working capital - Depreciation and amortization Total provided by operations Additions to long-term debt Disposal of property and equipment Other Total

$1 077 052 183 032 1 260 084 15 028 7 135 20 930 1 303 177

USE OF WORKING CAPITAL: Additions to property and equipment Payments and maturities of long,term debt Total DECREASE IN WORKING CAPITAL

2 181 54 2 236 $ 932

016 986 002 825

CHANGES IN WORKING CAPITAL ITEMS: Decrease in current assets: Cash and cash equivalents Accounts and notes receivable Deposits and prepaid expenses Total

$ 227 27 55 310

889 043 160 092

Increase in current liabilities: Deferred revenues Accounts payable Due to state chapters Accrued expenses Current maturities of long-term debt Total DECREASE IN WORKING CAPITAL

106 726 410 474 31 969 68 554 5 010 622 733 $ 932 825

See a c c o m p a n y i n g n o t e s to f i n a n c i a l s t a t e m e n t s .

12:1t November 1983

Annals of EmergencY Medicine

129

N O T E S TO FINANCIAL STATEMENTS NOTE 1 - - SUMMARY OF A C C O U N T I N G POLICIES PROPERTY AND EQUIPMENT

AND DEPRECIATION

Assets are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets. ALLOCATED COSTS Employee, occupancy and general overhead (College administration) costs are allocated to the various purposes and projects of the American College of Emergency Physicians (the "College"). DEFERRED REVENUES AND

PREPAID EXPENSES

Revenues received and expenses incurred relating to certain projects which will not be completed until after year end are deferred. Revenues from annual membership dues are recognized on a pro rata basis over the related membership terms. NOTE 2 -- GENERAL

The College is a nonprofit association under the provisions of Section 501 (c) (6) of the Internal Revenue Code and, as such, is subject to income taxes only on unrelated business income. For the College this consists of revenue from advertising in the College journal and newsletter. TO STATE CHAPTERS The state chapters may elect to have the College collect dues and pay expenditures incurred on their behalf. At June 30, 1983, the College was holding a total of $294,798 for such purposes. During the year, the College collected and disbursed approximately $780,000 and $750,000, respectively, on behalf of the chapters.

NOTE 3 -- DUE

The board of directors has established that a cash reserve be maintained equal to 20 percent of chapter balances. State chapters were paid interest on the balances maintained by the College at a rate of 10 percent per annum, compounded monthly. For the year ended June 30, 1983, the College paid $28,929 in interest on these accounts. A N D COMMITMENTS Classes of property and equipment at June 30, 1983 are as follows:

NOTE 4 -- PROPERTY AND EQUIPMENT

Headquarters building Furniture and equipment Land

$1 957 696 504 $3 159

941 906 648 495

The College leases various office equipment under operating leases expiring through 1987. The College also leases certain facilities in connection with its assemblies and meetings. Equipment and facilities rentals for the year ended June 30, 1983 totaled $196,400. Until completion of its headquarters building in 1983, the College leased office space. Total expense was $295,000 in 1983. Minimum lease payments in 1984, 1985, and 1986 are $62,400, $14,000, and $6,500, respectively. NOTE 5 -- DEFERRED REVENUES

At June 30, 1983, deferred revenues consist of the following: Membership dues Scientific Assembly revenues Fellow initiation fees Other meeting revenues

$1 371 80 26 21 $1 499

949 597

250 105 901

NOTE 6 -- PENSION PLAN

The College has a defined contribution money purchase pension plan for the benefit of all of its employees. Participation in the plan is immediate. Vesting begins after one year of service at a rate of 20 percent and increases in increments of 20 percent each year thereafter until fully vested. Pension expense for the College for the fiscal year was $92,500.

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12:11 November 1983