AACP's Treasurer Keith Herist along with COO Daniel Cassidy presented the Finance Committee report containing the 2012 Budget to the AACP Board. The agenda included a review of financial trends, major operating and financial assumptions, emerging opportunities and capital investments.
The Board adopted the 2012 Budget summarized below and accepted the preliminary budget projection for 2013.
2012 BUDGET SUMMARY
For 2012, revenue is budgeted to be $12,099,000 and expenses $12,063,000 resulting in net revenue of $36,000 or .6% of total revenue. For the comparative results and projections, see Table 1.
Budget Summarya
Major Budget Assumptions
Revenue:
An institutional dues increase of $3,000 per school plus one new school
PCAS revenues consistent with the prior year; PCAT testing fees up significantly
Conservative estimates for meeting registrations; continued softening of sponsorships
TEVA grant monies moved into 2012 from 2011 ($100,000)
NPF Research Awards entirely self-funded (2nd year in a row)
For sources of revenue, see Figure 1.
Sources of revenue.
Expense:
Member needs assessment ($50,000) – NEW
Congressional Fellow support of CMS Innovations Center ($25,000) - NEW
Operating under new PharmCAS management agreement with Liaison
Employee-benefit premiums at or below prior year levels
Staff positions – Membership Manager plus two administrative positions ($120,000 prorated)
For summary of expenses, see Figure 2.
Summary of expenses.
Comparing net revenue from operations.
Emerging Opportunities (see attached “Emerging Opportunities Analysis and Recommendations”)
Academic Research Fellows Program ($0 operating expense in 2012; potentially $100,000 in first program year)
Milestone Exams ($20,000 budgeted in 2012 for assessing the market; revenue model in future years contingent on business plan)
Standardized APPE Evaluation (e.g. Clinic-Eval) ($0 operating expense in 2012; potentially $225,000 in first program year and revenue model contingent on business plan)
Program, Curriculum, and Assessment Consulting Service ($5,000 for feasibility evaluation in 2012; potentially $25,000 in first program year)
Academic Practice Partnership Initiative – II (Experiential Education quality and capacity)*
Teams Leadership Development (Deans & Department Chairs*
2013 Major Budget Assumptions:
Revenue:
Three new schools
PCAS revenues consistent with the prior year; PCAT testing fees level
Meeting registrations moderately higher due to 2011 results and Orlando site
TEVA grant renews for another year
Sub-tenant lease is terminated early in anticipation of starting construction on new office space re-design
Expense:
No new staff positions budgeted at this time and employee benefit premiums increase 10%
No congressional fellow; will have a Scholar in Residence
Higher annual meeting costs
PharmCAS expenses increase due to higher WebAdMIT and background check fees
No expenses budgeted for new emerging opportunities at this time.
The 2012 capital budget is shown in Table 2.
2012 Capital Budget
Footnotes
↵* APPI-II and Dean-Department Chair Development have already received attention leaving the other four needing specific planning and implementation attention.
- © 2011 American Association of Colleges of Pharmacy