2013 Treasurer's Report

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2013 Treasurer's Report 

It has been an honor and a privilege to serve as AACP Treasurer for the past six years and see the Association grow from a $9 million budget organization to one with a $13+ million budget. AACP enjoys a positive cash flow and asset growth, most notably in the rebound of the investment portfolio. Cash and investments comprise 84 percent of total assets, and investments are managed under a balanced investment approach yielding a return of more than 8 percent through March 2013. As the final results for fiscal year 2013 are prepared, AACP expects to reduce the projected net operating deficit by more than $150,000. Demand continues to be strong for AACP’s highly valued programs, which address critical member needs, and the Association is poised to tackle the challenges ahead.

Record attendance for educational programming delivered through meetings and institutes, along with increased student services fees from PharmCAS and PCAT, resulted in a majority of total revenues, followed by member dues. While new revenue streams are being identified, student affairs revenues continue to account for more than 50 percent of the revenues. AACP has also benefited greatly from the expansion in the number of schools from 103 in 2007 to 129 this year. The erosion of corporate and industry support means AACP must rely more heavily on member-generated fees to sustain the current level of member services.

Over the years, the AACP Board of Directors and staff have been good stewards of Association resources, operating in a highly efficient manner. As Chair of both the AACP Finance and Investment Committees, I have worked hard with other leaders to manage resources effectively and provide for the long-term viability of the organization while also setting aside funds for future investment. Following are some of the significant initiatives that have helped bolster the balance sheet and management of financial resources:

  • Selling our legacy headquarters in 2009 for an excellent price despite the fact that the historic recession had begun to impact the commercial real estate market.
  • Changing the Association’s investment managers/firm during a volatile period was impeccable timing, such that today AACP has invested assets approaching $6 million and an annual budget of over $13 million.
  • Adopting the institutional dues increase during recessionary times, with foresight that PharmCAS growth was fully matured.
  • Formally implementing the Finance and Investment Committee charters, charges and members, adding to AACP’s financial sophistication.
  • Forming the Audit Committee to help the Association transition to new auditors and add an additional layer of financial oversight.

AACP’s planning process has given us the opportunity to assess prospects for new revenue sources. It has also given us the chance to begin assessing whether our infrastructure is right-sized for the future. AACP expects 2014 to be a more challenging year, but the early indicators of a record Annual Meeting attendance in Chicago in July exemplify our commitment to delivering quality programs and services to help pharmacy educators grow professionally and pharmacy institutions become more effective.

Looking ahead to 2014, AACP is in a solid financial position to expand its reach nationally. The Association is positioned to continually develop member services and explore global initiatives while, along with its member schools, confronting one of the most difficult economic periods in recent history. As Treasurer, I am fortunate to work with talented leaders, guiding a profession focused on transforming healthcare by advancing pharmacy education.

Keith N. Herist, Pharm.D., CPA
AACP Treasurer
The University of Georgia

 

 

 

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