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Report of the treasurer — Years ended June 30, 1991 and 1990
TRE.ASURER'S REPORT ACEP
R e p o r t of t h e T r e a s u r e r -Years E n d e d J u n e 30, 1991 a n d 1 9 9 0
Marwick Certified Public Accountants Suite 1400 Thanksgiving Tower 1601 Elm Street Dallas, TX 75201
INDEPENDENT AUDITORS' REPORT
Board of Directors American College of Emergency Physicians:
We have audited the accompanying balance sheets of the American College of Emergency Physicians as of June 30, 1991 and 1990, and the related statements of activity and members' equity, and cash flows for the years then ended. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the American College of Emergency Physicians as of June 30, 1991 and 1990, and the results of its operations and changes in members' equity and its cash flows for the years then ended, in conformity with generally accepted accounting principles.
August 23, 1991
20:12 December 1991
Annals of Emergency Medicine
165
TREASURER'S REPORT ACEP
A M E R I C A N COLLEGE OF EMERGENCY PHYSICIANS BALANCE SHEETS JUNE 30, 1991 A N D 1990 ASSETS
FIXED ASSETS: Land Headquarters building Building fixtures Furniture and equipment Data processing software Less accumulated depreciation Deposits TOTAL ASSETS
1990
1991
CURRENT: Cash and cash equivalents Certificates of deposit (note 3) Accounts and notes receivable, less allowance for doubtful accounts of $4,753 in 1991 and $16,342 in 1990 Accrued interest Inventory Prepaid expenses Deferred expenses (note 4) TOTAL CURRENT ASSETS
$1 348 094 2 013 000 635 50 141 146 632 4 968
2 732 523
921 127 681 855 693 371
462 14 112 108 657 4 087
236 999 088 214 021 081
504 648 2 026 516 291 903 1 894 465 397 415 5 114 947 1 485 463 3 629 484 7 514 $ 8 605 369
504 2 026 289 1 850 332 5 003 1 151 3 851 8 7 947
648 516 236 325 688 413 715 698 414 193
$
489 294 78 95 44 460 2 866 4 329
042 500 150 541 767 514 991 505
LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade and other Accrued compensation Accrued employee benefit plan contribution Other accrued expenses Federal income taxes payable (note 2) Amounts due to chapter affiliates (note 3) Deferred revenues (note 4) TOTAL CURRENT LIABILITIES MEMBERS' EQUITY COMMITMENTS (notes 5, 6, and 7) TOTAL LIABILITIES AND MEMBERS' EQUITY
361 477 78 128 13 445 3 202 4 708
886 705 312 773 931 167 335 109
3 897 260
3 617 688
$ 8 605 369
7 947 193
See accompanying notes to financial statements.
166
Annals of Emergency Medicine
20:12 December 1991
TREASURER'S REPORT ACEP
STATEMENTS OF ACTIVITY AND MEMBERS' EQUITY YEARS ENDED JUNE 30, 1991 A N D 1990 REVENUES: Membership Educational meetings Policy A n n a l s and other publications Interest and other revenue Total revenues EXPENSES FOR PROGRAMS A N D SERVICES: Membership Educational meetings Policy A n n a l s and other publications Total expenses for programs and services ADMINISTRATIVE EXPENSES: College administration Incentive compensation plan (note 6) Federal income taxes (note 2) Loss on disposal of equipment Total administrative expenses Total expenses Excess (deficiency) of revenues over expenses Members' equity at beginning of year Members' equity at end of year
1991
1990
$ 4 807 652 2 900 709 324 748 2 793 258 293 574 11 119 941
4 304 603 2 634 013 270 359 2 882 298 266 069 10 357 342
2 4 3 10
207 634 399 020 262
254 642 730 970 596
283 073 115 700 179 000 577 773 10 840 369 279 572 3 617 688 $ 3 897 260
2 3 3 9
214 644 988 046 894
852 971 074 537 434
260 529 165 189 614 10 509
000 309 838 272
(151 930) 3 769 618 3 617 688
See a c c o m p a n y i n g n o t e s to financial s t a t e m e n t s .
STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1991 A N D 1990 1991
CASH FLOWS FROM OPERATING ACTIVITIES: Excess (deficiency) of revenues over expenses Adjustments to reconcile excess (deficiency) of revenues over expenses to net cash provided by operating activities: Depreciation Provision for losses on accounts receivable Loss on disposal of equipment Increase in accounts receivable Decrease (increase) in accrued interest Decrease (increase) in inventory Decrease (increase) in prepaid expenses Decrease (increase) in deferred expenses Decrease in deposits Increase in accounts payable and accrued expenses Increase (decrease) in federal income taxes payable Decrease in amounts due chapter affiliates Increase in deferred revenues Total adjustments Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Decrease (increase) in certificates of deposit Proceeds from sale of equipment Capital expenditures Decrease in other assets Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
$ 279 572
393 624 11 200 (184 885}
(35 128)
1990
(151 930)
407 12 189 (166
761 000 309 433)
5 510
(29 593) (38 641) 24 328 900 89 443 [30 836) (15 347) 335 344 520 409 799 981
161 43 (101 4 177 44 (22 103 857 705
624 324 916) 000 506 767 938) 006 520 590
719 523
(367 13 (695 221
523) 150 226) 105
{171 410)
548 113 1 348 094 -
(828 494) (122 904) 122 904
$1 348 094
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 .
20:12 December 1991
Annals of Emergency Medicine
167
TREASURER'S REPORT ACEP
AMERICAN COLLEGE OF EMERGENCY PHYSICIANS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1991 A N D 1990 1. Summary of Significant Accounting Policies a. General The American College of Emergency Physicians (the College) is a Texas not-for-profit corporation that provides continuing education in emergency medicine through various programs, publications, and updates on developments in emergency medicine. Additionally, the College provides administrative support for certain chapter affiliates. The College manages other organizations with related purposes for fees established by the Board of Directors. b. Revenues and Expenses Membership revenues and expenses relate to the planning, production, and i m p l e m e n t a t i o n of m e m b e r s h i p recruitm e n t and retention programs. Revenues and expenses from educational meetings relate to the development and implementation of educational programs, Revenues and expenses from policy relate to government relations activities, emergency medical services issues, and aspects of emergency medicine practice at the state and federal level, Revenues and expenses from Annals and other publications relate to the development and production of publications and the operation of a bookstore during educational programs. c. Certificates of Deposit Certificates of deposit are carried at a cost that approximates market. d. I n v e n t o r y Inventory consists of course materials and literature held for sale and is valued at the lower of cost or market. e. Deferred Revenues and Deferred Expenses Revenues and expenses relating to certain projects not completed at the end of each year are deferred. Revenues from annual membership dues and n o n m e m b e r subscriptions are recognized on a pro rata basis over the related membership and subscription terms.
•
Revenues from grants are deferred until related expenses are incurred or upon passage of time as specified by the grant, f. Fixed Assets Fixed assets are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, g. Allocated Costs Employee, occupancy, and general overhead (College administration) costs are allocated to the various functions and projects of the College. h. Statements of Cash Flows Cash and cash equivalents consist of cash, certificates of deposit with an original maturity of three m o n t h s or less, and .a repurchase agreement related to U.S. G o v e r n m e n t Treasury bills, the face a m o u n t of w h i c h is guaranteed. i. Reclassifications Certain prior year balances reflect reclassifications made to cOnform to the current year presentation, 168
2. Federal Income Tax The College is a nonprofit corporation under the provisions of Section 501(c)(6) of the Internal Revenue Code and, as such, is subject to income taxes only to the extent of taxable unrelated business income. This consists primarily of net excess advertising revenue from the College journal (Annals of Emergency Medicine) and newsletter (ACEP News). A provision for federal income taxes of $179,000 and $165,000 has been made for the fiscal years ended June 30, 1991 and 1990, respectively. Total payments for federal income taxes for current and prior year liabilities aggregated $209,836 and $113,628 during the fiscal years ended June 30, 1991 and i990, respectively. 3. Due to Chapter Affiliates The College's chapter affiliates may elect to have the College collect dues and pay expenditures on their behalf. The College was holding a total of $445,167 and $460,514 for such purposes at June 30, 1991 and 1990, respectively. These amounts were invested primarily in certificates of deposit. The College collected $1,948,014 and $1,739,184 and disbursed $I,963,361 and $1,762,121 on behalf of the chapters during the fiscal years ended June 30, 1991 and 1990, respectively. Chapters were paid interest on the balances maintained by the College at an average of 7.59% and 8.31% during the fiscal years ended June 30, i991 and 1990, respectively. Interest paid by the College on these accounts for fiscal 1991 and 1990 was $35,910 and $38,890, respectively. 4. Deferred Revenues and Expenses Deferred revenues at June 30, 1991 and 1990 are composed of the following: 1991 1990 Membership dues $2 320 734 $2 102 209 Scientific Assembly revenues 269 300 381 874 N o n m e m b e r subscriptions 151 652 134 412 Fellow initiation fees 55 600 67 100 Publication revenues 298 061 126 562 Grants Other revenues
70 833 36 155 ~3 202 335
40 833 i4 001 ~2 866 991
Deferred grant revenue relates primarily to monies pledged by certain physicians to provide funding for a Research Director position at the College. Under terms of the grants certain physicians each pledged $30,000 to be remitted in annual installments of $i0,000 beginning in June 1989. The College received advances under the grant of $80,000 and $20,000 during the fiscal years ended June 30, 1991 and 1990, respectively. These amounts are recognized as revenue w h e n costs associated with the Research Director's position are incurred. The Research Director's position was filled in December 1989 and $50,000 and $29,167 were recognized as revenue during the fiscal years ended June 30, 1991 and 1990, respectively. As future receipts are dependent upon the success of the program, the College has not recognized the pledges as receivable in the accompanying financial statements. The College also received a grant from the Federal Emergency M a n a g e m e n t Agency (FEMA) during fiscal 1989 (Phase I). FEMA agreed to provide approximately 75% of the cost to develop a study regarding problem identification and resolution in Emergency Medical Services. The total cost of Phase I was $218,390 of which $189,581 has been granted and paid by
Annals of Emergency Medicine
20:12 December 1991
TREASURER'S REPORT ACEP
FEMA. In July 1990, the College received a second grant from FEMA for Phase II of the study. The total estimated cost for Phase II is $272,947 of which $214,617 has been granted by FEMA. The remaining cost of approximately $58,000 will be provided by the College. Revenue recognition under the terms of the grants is based on actual expenses incurred. Revenue recognized under the grants was $83,351 and $163,394 for the fiscal years ended June 30, 1991 and 1990, respectively. Corresponding receivables are recorded in the accompanying financial statements. Deferred expenses at June 30, 1991 and 1990 are composed of the following: Meetings Courses and publications Other
1991 $263 069 369 624 $632 693
1990 294 827 310 758 5 1 436 657 021
5. Employee Benefit Plans Effective April 1, 1991, the College adopted a 401(k) profit sharing plan for the benefit of all eligible employees. Participation in the plan is immediate. The College is required to contribute an a m o u n t equal to 10% of each eligible employee's compensation and a matching contribution of 15% of the employee's eligible contribution (the m a x i m u m eligible a m o u n t is 6% of employee's base compensation). The employee may elect to contribute up to 10% of his/her compensation after one year of service. Vesting in employer contributions begins after one year of service at a rate of 20% and increases in increments of 20% each year thereafter until fully vested. Expense related to this plan was $81,639 for the fiscal year ended June 30, 1991. Through March 31, 1991, the College had a defined contribution money purchase pension plan for the benefit of all eligible employees. The College was required to contribute an a m o u n t equal to 8% of each eligible employee's compensation. Expense related to this plan was $195,433 and $236,771 for the fiscal years ended June 30, 1991 and 1990, respectively. Due to
20:12 December 1991
changes in existing tax legislation, this plan was combined with the profit sharing plan on April 1, 1991. Vesting in employer contributions continues in accordance with the terms of the profit sharing plan. • Through March 31, 1991, the College had a thrift savings plan with 401 (k) provisions for the benefit of all eligible employees. The College was required to contribute an a m o u n t equal to 2% of each eligible employee's compensation, and a matching contribution equal to 15% of the employee's contribution. Vesting was immediate under this plan. Employees could elect any contribution percentage between 0% and 6% of their compensation. Expense related to this plan was $53,955 and $61,430 for the fiscal years ended June 30, 1991 and 1990, respectively. Due to changes in existing tax legislation, this plai1 was combined with the profit sharing plan on April 1, 1991. Incentive Compensation Plan During fiscal 1991, the College i m p l e m e n t e d an i n c e n t i v e compensation plan for personnel employed by the College for an entire fiscal year. Forty percent of the excess of revenues over expenses for a fiscal year that exceeds an objective established by the Board of Directors is available as incentive com-. pensation for employees who meet certain performance criteria. Expense related to this plan was $115,700 during the fiscal year ended June 30, 1991. Commitments C o m m i t m e n t s for payment under operating leases and emp l o y m e n t c o n t r a c t s are asfollows: 1992 $ 336 147 1993 336 147 1994 330702 1995 34 105 $1 037 101 The College also leases certain facilities in connection with its assemblies and meetings. These contracts contain cancellation provisions, and there are no c o m m i t m e n t s extending beyond 1995 as of.June 30, 1991.
Annals of Emergency Medicine
169
R e p o r t of t h e T r e a s u r e r -Years E n d e d J u n e 30, 1991 a n d 1 9 9 0
Marwick Certified Public Accountants Suite 1400 Thanksgiving Tower 1601 Elm Street Dallas, TX 75201
INDEPENDENT AUDITORS' REPORT
Board of Directors American College of Emergency Physicians:
We have audited the accompanying balance sheets of the American College of Emergency Physicians as of June 30, 1991 and 1990, and the related statements of activity and members' equity, and cash flows for the years then ended. These financial statements are the responsibility of the College's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the American College of Emergency Physicians as of June 30, 1991 and 1990, and the results of its operations and changes in members' equity and its cash flows for the years then ended, in conformity with generally accepted accounting principles.
August 23, 1991
20:12 December 1991
Annals of Emergency Medicine
165
TREASURER'S REPORT ACEP
A M E R I C A N COLLEGE OF EMERGENCY PHYSICIANS BALANCE SHEETS JUNE 30, 1991 A N D 1990 ASSETS
FIXED ASSETS: Land Headquarters building Building fixtures Furniture and equipment Data processing software Less accumulated depreciation Deposits TOTAL ASSETS
1990
1991
CURRENT: Cash and cash equivalents Certificates of deposit (note 3) Accounts and notes receivable, less allowance for doubtful accounts of $4,753 in 1991 and $16,342 in 1990 Accrued interest Inventory Prepaid expenses Deferred expenses (note 4) TOTAL CURRENT ASSETS
$1 348 094 2 013 000 635 50 141 146 632 4 968
2 732 523
921 127 681 855 693 371
462 14 112 108 657 4 087
236 999 088 214 021 081
504 648 2 026 516 291 903 1 894 465 397 415 5 114 947 1 485 463 3 629 484 7 514 $ 8 605 369
504 2 026 289 1 850 332 5 003 1 151 3 851 8 7 947
648 516 236 325 688 413 715 698 414 193
$
489 294 78 95 44 460 2 866 4 329
042 500 150 541 767 514 991 505
LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade and other Accrued compensation Accrued employee benefit plan contribution Other accrued expenses Federal income taxes payable (note 2) Amounts due to chapter affiliates (note 3) Deferred revenues (note 4) TOTAL CURRENT LIABILITIES MEMBERS' EQUITY COMMITMENTS (notes 5, 6, and 7) TOTAL LIABILITIES AND MEMBERS' EQUITY
361 477 78 128 13 445 3 202 4 708
886 705 312 773 931 167 335 109
3 897 260
3 617 688
$ 8 605 369
7 947 193
See accompanying notes to financial statements.
166
Annals of Emergency Medicine
20:12 December 1991
TREASURER'S REPORT ACEP
STATEMENTS OF ACTIVITY AND MEMBERS' EQUITY YEARS ENDED JUNE 30, 1991 A N D 1990 REVENUES: Membership Educational meetings Policy A n n a l s and other publications Interest and other revenue Total revenues EXPENSES FOR PROGRAMS A N D SERVICES: Membership Educational meetings Policy A n n a l s and other publications Total expenses for programs and services ADMINISTRATIVE EXPENSES: College administration Incentive compensation plan (note 6) Federal income taxes (note 2) Loss on disposal of equipment Total administrative expenses Total expenses Excess (deficiency) of revenues over expenses Members' equity at beginning of year Members' equity at end of year
1991
1990
$ 4 807 652 2 900 709 324 748 2 793 258 293 574 11 119 941
4 304 603 2 634 013 270 359 2 882 298 266 069 10 357 342
2 4 3 10
207 634 399 020 262
254 642 730 970 596
283 073 115 700 179 000 577 773 10 840 369 279 572 3 617 688 $ 3 897 260
2 3 3 9
214 644 988 046 894
852 971 074 537 434
260 529 165 189 614 10 509
000 309 838 272
(151 930) 3 769 618 3 617 688
See a c c o m p a n y i n g n o t e s to financial s t a t e m e n t s .
STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1991 A N D 1990 1991
CASH FLOWS FROM OPERATING ACTIVITIES: Excess (deficiency) of revenues over expenses Adjustments to reconcile excess (deficiency) of revenues over expenses to net cash provided by operating activities: Depreciation Provision for losses on accounts receivable Loss on disposal of equipment Increase in accounts receivable Decrease (increase) in accrued interest Decrease (increase) in inventory Decrease (increase) in prepaid expenses Decrease (increase) in deferred expenses Decrease in deposits Increase in accounts payable and accrued expenses Increase (decrease) in federal income taxes payable Decrease in amounts due chapter affiliates Increase in deferred revenues Total adjustments Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Decrease (increase) in certificates of deposit Proceeds from sale of equipment Capital expenditures Decrease in other assets Net cash provided by (used in) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
$ 279 572
393 624 11 200 (184 885}
(35 128)
1990
(151 930)
407 12 189 (166
761 000 309 433)
5 510
(29 593) (38 641) 24 328 900 89 443 [30 836) (15 347) 335 344 520 409 799 981
161 43 (101 4 177 44 (22 103 857 705
624 324 916) 000 506 767 938) 006 520 590
719 523
(367 13 (695 221
523) 150 226) 105
{171 410)
548 113 1 348 094 -
(828 494) (122 904) 122 904
$1 348 094
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 .
20:12 December 1991
Annals of Emergency Medicine
167
TREASURER'S REPORT ACEP
AMERICAN COLLEGE OF EMERGENCY PHYSICIANS NOTES TO FINANCIAL STATEMENTS JUNE 30, 1991 A N D 1990 1. Summary of Significant Accounting Policies a. General The American College of Emergency Physicians (the College) is a Texas not-for-profit corporation that provides continuing education in emergency medicine through various programs, publications, and updates on developments in emergency medicine. Additionally, the College provides administrative support for certain chapter affiliates. The College manages other organizations with related purposes for fees established by the Board of Directors. b. Revenues and Expenses Membership revenues and expenses relate to the planning, production, and i m p l e m e n t a t i o n of m e m b e r s h i p recruitm e n t and retention programs. Revenues and expenses from educational meetings relate to the development and implementation of educational programs, Revenues and expenses from policy relate to government relations activities, emergency medical services issues, and aspects of emergency medicine practice at the state and federal level, Revenues and expenses from Annals and other publications relate to the development and production of publications and the operation of a bookstore during educational programs. c. Certificates of Deposit Certificates of deposit are carried at a cost that approximates market. d. I n v e n t o r y Inventory consists of course materials and literature held for sale and is valued at the lower of cost or market. e. Deferred Revenues and Deferred Expenses Revenues and expenses relating to certain projects not completed at the end of each year are deferred. Revenues from annual membership dues and n o n m e m b e r subscriptions are recognized on a pro rata basis over the related membership and subscription terms.
•
Revenues from grants are deferred until related expenses are incurred or upon passage of time as specified by the grant, f. Fixed Assets Fixed assets are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, g. Allocated Costs Employee, occupancy, and general overhead (College administration) costs are allocated to the various functions and projects of the College. h. Statements of Cash Flows Cash and cash equivalents consist of cash, certificates of deposit with an original maturity of three m o n t h s or less, and .a repurchase agreement related to U.S. G o v e r n m e n t Treasury bills, the face a m o u n t of w h i c h is guaranteed. i. Reclassifications Certain prior year balances reflect reclassifications made to cOnform to the current year presentation, 168
2. Federal Income Tax The College is a nonprofit corporation under the provisions of Section 501(c)(6) of the Internal Revenue Code and, as such, is subject to income taxes only to the extent of taxable unrelated business income. This consists primarily of net excess advertising revenue from the College journal (Annals of Emergency Medicine) and newsletter (ACEP News). A provision for federal income taxes of $179,000 and $165,000 has been made for the fiscal years ended June 30, 1991 and 1990, respectively. Total payments for federal income taxes for current and prior year liabilities aggregated $209,836 and $113,628 during the fiscal years ended June 30, 1991 and i990, respectively. 3. Due to Chapter Affiliates The College's chapter affiliates may elect to have the College collect dues and pay expenditures on their behalf. The College was holding a total of $445,167 and $460,514 for such purposes at June 30, 1991 and 1990, respectively. These amounts were invested primarily in certificates of deposit. The College collected $1,948,014 and $1,739,184 and disbursed $I,963,361 and $1,762,121 on behalf of the chapters during the fiscal years ended June 30, 1991 and 1990, respectively. Chapters were paid interest on the balances maintained by the College at an average of 7.59% and 8.31% during the fiscal years ended June 30, i991 and 1990, respectively. Interest paid by the College on these accounts for fiscal 1991 and 1990 was $35,910 and $38,890, respectively. 4. Deferred Revenues and Expenses Deferred revenues at June 30, 1991 and 1990 are composed of the following: 1991 1990 Membership dues $2 320 734 $2 102 209 Scientific Assembly revenues 269 300 381 874 N o n m e m b e r subscriptions 151 652 134 412 Fellow initiation fees 55 600 67 100 Publication revenues 298 061 126 562 Grants Other revenues
70 833 36 155 ~3 202 335
40 833 i4 001 ~2 866 991
Deferred grant revenue relates primarily to monies pledged by certain physicians to provide funding for a Research Director position at the College. Under terms of the grants certain physicians each pledged $30,000 to be remitted in annual installments of $i0,000 beginning in June 1989. The College received advances under the grant of $80,000 and $20,000 during the fiscal years ended June 30, 1991 and 1990, respectively. These amounts are recognized as revenue w h e n costs associated with the Research Director's position are incurred. The Research Director's position was filled in December 1989 and $50,000 and $29,167 were recognized as revenue during the fiscal years ended June 30, 1991 and 1990, respectively. As future receipts are dependent upon the success of the program, the College has not recognized the pledges as receivable in the accompanying financial statements. The College also received a grant from the Federal Emergency M a n a g e m e n t Agency (FEMA) during fiscal 1989 (Phase I). FEMA agreed to provide approximately 75% of the cost to develop a study regarding problem identification and resolution in Emergency Medical Services. The total cost of Phase I was $218,390 of which $189,581 has been granted and paid by
Annals of Emergency Medicine
20:12 December 1991
TREASURER'S REPORT ACEP
FEMA. In July 1990, the College received a second grant from FEMA for Phase II of the study. The total estimated cost for Phase II is $272,947 of which $214,617 has been granted by FEMA. The remaining cost of approximately $58,000 will be provided by the College. Revenue recognition under the terms of the grants is based on actual expenses incurred. Revenue recognized under the grants was $83,351 and $163,394 for the fiscal years ended June 30, 1991 and 1990, respectively. Corresponding receivables are recorded in the accompanying financial statements. Deferred expenses at June 30, 1991 and 1990 are composed of the following: Meetings Courses and publications Other
1991 $263 069 369 624 $632 693
1990 294 827 310 758 5 1 436 657 021
5. Employee Benefit Plans Effective April 1, 1991, the College adopted a 401(k) profit sharing plan for the benefit of all eligible employees. Participation in the plan is immediate. The College is required to contribute an a m o u n t equal to 10% of each eligible employee's compensation and a matching contribution of 15% of the employee's eligible contribution (the m a x i m u m eligible a m o u n t is 6% of employee's base compensation). The employee may elect to contribute up to 10% of his/her compensation after one year of service. Vesting in employer contributions begins after one year of service at a rate of 20% and increases in increments of 20% each year thereafter until fully vested. Expense related to this plan was $81,639 for the fiscal year ended June 30, 1991. Through March 31, 1991, the College had a defined contribution money purchase pension plan for the benefit of all eligible employees. The College was required to contribute an a m o u n t equal to 8% of each eligible employee's compensation. Expense related to this plan was $195,433 and $236,771 for the fiscal years ended June 30, 1991 and 1990, respectively. Due to
20:12 December 1991
changes in existing tax legislation, this plan was combined with the profit sharing plan on April 1, 1991. Vesting in employer contributions continues in accordance with the terms of the profit sharing plan. • Through March 31, 1991, the College had a thrift savings plan with 401 (k) provisions for the benefit of all eligible employees. The College was required to contribute an a m o u n t equal to 2% of each eligible employee's compensation, and a matching contribution equal to 15% of the employee's contribution. Vesting was immediate under this plan. Employees could elect any contribution percentage between 0% and 6% of their compensation. Expense related to this plan was $53,955 and $61,430 for the fiscal years ended June 30, 1991 and 1990, respectively. Due to changes in existing tax legislation, this plai1 was combined with the profit sharing plan on April 1, 1991. Incentive Compensation Plan During fiscal 1991, the College i m p l e m e n t e d an i n c e n t i v e compensation plan for personnel employed by the College for an entire fiscal year. Forty percent of the excess of revenues over expenses for a fiscal year that exceeds an objective established by the Board of Directors is available as incentive com-. pensation for employees who meet certain performance criteria. Expense related to this plan was $115,700 during the fiscal year ended June 30, 1991. Commitments C o m m i t m e n t s for payment under operating leases and emp l o y m e n t c o n t r a c t s are asfollows: 1992 $ 336 147 1993 336 147 1994 330702 1995 34 105 $1 037 101 The College also leases certain facilities in connection with its assemblies and meetings. These contracts contain cancellation provisions, and there are no c o m m i t m e n t s extending beyond 1995 as of.June 30, 1991.
Annals of Emergency Medicine
169