As you have read the highlights and key accomplishments in this Annual Report, I am pleased to share with you that AACP’s financial position and operating performance remains very strong and continues to improve. AACP enjoys positive cash flow and asset growth, most notably in the rebound of the investment portfolio. Cash and investment comprise 81% of total assets, and investments are managed under a balanced investment approach yielding a return of more than 8% since inception in 2009 through June 2013. Careful financial and budget management has resulted in the Academy accumulating considerable resources for funding new opportunities and initiatives that support and further the mission. Your Academy is Poised for Growth in new and existing programs that will increase member engagement and deliver highly-valued services!
Under the current strategic plan, Critical Issue 6 is about ensuring that necessary resources and infrastructure are in place for supporting our mission and accomplishing strategic directions across the Academy. As Chair of both the AACP Finance and Investment Committees, I have worked with our Senior Director of Finance and 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. A standard measure of an association’s financial stability is its net assets ratio (the percentage of net assets divided by operating expenses). AACP’s ratio is 37 percent (a percentage of 25 percent or better is considered at or above standard).
In the fiscal year about to end in June, AACP is projecting a year-over-year increase in revenue, even though the growth in participation among key programs like the PharmCAS and PCAT testing have leveled off or dipped slightly in recent years. To mitigate the financial risks from the reliance on this one source of revenue from Student Services, AACP continues to look for new opportunities to diversify its revenue streams by developing new, critically important member services and explore global initiatives while also confronting, along with its member schools, one of the most difficult economic periods in recent history.
I am pleased to report that AACP’s Board of Directors and staff have been good stewards of your resources and today operate in a highly efficient manner. AACP has shown it is nimble in its planning activities, responsive to member needs and that is well positioned to support our dynamic and growing profession. As your Treasurer, I am fortunate to work with such talented leaders and for a profession so focused on transforming healthcare by advancing pharmacy education! Thank you for your continuing support of our Association!
J. Chris Bradberry, Pharm.D.AACP Treasurer