1. Treasurer’s Report
May 2012

2. Overview
Preliminary year end deficit is $318K for unrestricted activities, on a consolidated basis
Preliminary year end surplus is $2.4M for the APA (the c6 entity) on a stand alone basis and a deficit of $2.7M for the APF.
APA & APF investments at December 31 totaled approximately $69M.

3. Preliminary data - December 2011
Unrestricted Activity:
Annual
Budget
Actual
Difference
Unrestricted Revenue
46,557
43,921
(2,636)
Unrestricted Expense
46,511
44,239
2,272
Unrestricted Operating Net Income/(Loss) 46
(318)
(364)

4. Actuals compared to Budget
Publishing revenues were below budget by $705K due to decreased book sales, including DSM IV – offset by a positive variance in advertising revenues
Meeting revenues were below budget $1.1M due to reduced income from registration and exhibits
Expenditures were less than budget by $2.3M, due to vacancy savings, printing and postage costs, as well as meeting costs
Pension Expense estimated at $1.1M more due to market conditions.

5. Membership Dues Revenue

6. Membership

7. Number of Dues Paying Members

8. International Members

9. Advertising Revenue

10. Net Revenue from DSM IV

11. Net Revenue from Meetings
Toronto
San Diego
Atlanta
San Francisco DC
New Orleans
Hawaii

12. Registration + Course Fees

13. Pharma Revenue

14. Budgeted FTE

15. Status of Reserves
Unrestricted reserves are another indicator of an organization’s financial stability. These reserves are the not-for-profit company’s equivalent to equity in a for profit.
The unrestricted reserves can be further split into those that are designated by the Board for a specific purpose, for example the DSM fund and the Land Sale proceeds fund and those that are undesignated.
In 2002, the Board approved the creation of a Reserve Replenishment fund in the APA C6 organization. $500K was added to the fund in ’02 and ’03 as part of a scheduled transfer to begin to rebuild the reserves.
In 2004, the Board approved the transfer of the 2003 surplus into the reserves increasing the AMS fund to fully cover the costs for the Association Management System and adding the remaining surplus to the Reserve Replenishment. Also in 2004, the Board approved a policy requiring the transfer of any surplus to the Reserve Replenishment fund.
As a result of these actions, the Reserve Replenishment fund had reached $8.9M by the end of 2004.
In early 2005, the APPI and APA board approved actions setting aside $12.3M of the APPI unrestricted undesignated reserve by replenishing the land fund by $1M, creating an APPI Reserve Replenishment fund of $2.5M and creating an APPI Board Designated grant fund of $8.3M.
As the result of the year end surplus in 2005, the APAc6 met its reserve target of 40%.
In 2005, the Board approved a target of 100% of operating expenditures.

16. Early Indicators
Membership dues revenue running below budget; lowest in several years. However, there’s an increase in members on monthly payment plan.
Meeting registration significantly below expectations; expect overall revenue (registration, exhibits and course fees) to be below budget.

17. DSM V Development Cumulative
As of March 2008, we had expended $3.9M on development and about $1.3M on expense activities.