2004 budget projects strong profits for the Association - Treasurer's Report

AORN Journal,  Feb, 2004  by Paula Graling

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The AORN Board of Directors met Nov 13-15, 2003, to focus on Association business, review AORN's audited financial statements from fiscal year (FY) 2003 and approve the budget for FY 2004. As noted in previous Treasurer's reports, AORN has changed its fiscal year from a June 30 year-end to a December 31 year-end, which coincides with the calendar year.

CLOSING FISCAL YEAR 2003 BOOKS

The AORN Board is working diligently with Headquarters staff members to improve the business of AORN and return the Association to profitability. Review of consolidated financial statements for FY 2003, which closed on June 30, 2003, shows AORN and its subsidiaries had an increase (ie, profit) in net assets of $69,641, compared to FY 2002 results that showed a $986,694 decrease (ie, loss). The 2002 loss primarily was due to writing off the AORN Surgical Knowledgebase project and losses generated from the High Point Copy Center. The primary reasons for the increase in net assets in FY 2003 over FY 2002 were

* strong earnings from AORN's investments compared to losses generated in FY 2002 during a declining stock market,

* the financial success of AORN's 50th Congress, and

* other programs and services offered to members that generated better margins than the previous year.

SHORT FISCAL YEAR (JULY TO DECEMBER 2003)

AORN relies heavily on support from its industry colleagues and the annual Congress continues to provide the most revenue for the Association. It takes place in the first quarter of the calendar year, so members can expect a loss for the short fiscal year (ie, July 2003 to December 2003). For the first four months of the shortened fiscal year, AORN recorded an operating loss of approximately $1.5 million, which is comparable to the same period in 2002. AORN historically has relied on Congress to generate profits to offset losses reported throughout the year, so these losses are typical for the organization and actually are lower than what was budgeted. In addition, the spin-off of AORN's Management Solutions, a wholly-owned AORN subsidiary that provides OR interim management, consulting, and permanent placement for health care facilities, has generated strong revenue growth and profits during its first four months.

FISCAL YEAR 2004 BUDGET

During the November 2003 Board of Directors meeting, the Board approved the budget for FY 2004 (ie, January to December 2004). AORN and each of its subsidiaries are budgeted to post strong profits in FY 2004. Changes were made in the budget process and financial statements to better highlight for the Board and executive managers the products and services AORN offers its members. As a result, the Board and Headquarters staff members will be able to identify financial opportunities and concerns more quickly.

CONCLUSION

A full report on the financial position of AORN will be provided during Congress in San Diego. The great news is that AORN's financial position remains strong, which will foster the ability to serve the needs of AORN's members and perioperative patients. Please feel free to contact me at (800) 755-2676 x 311, if you have further questions.

PAULA R. GRALING

RN, MSN, CNOR

TREASURER

COPYRIGHT 2004 Association of Operating Room Nurses, Inc.
COPYRIGHT 2004 Gale Group