Fiscal year 2001-2002 highlights

Communication World, April-May, 2003 by Julie A. Freeman

To say that FY02 was a time of challenge and change is not a very original statement, but it is true, nonetheless. Dramatic changes in the global business and political environment affected our members and the communication profession, which in turn affected ABC's programs and services.

On 30 Sept., 2001, ABC had 13,048 members, made up of 11,933 professional members and 1,115 student members. This represented a decrease in membership from September 2000, but three months into the next fiscal year, retention rates were improving and membership increasing. ABC's executive board, other volunteers and staff worked to make membership valuable through the following programs:

* Financial Management: ABC finished FY02 with a loss of US$22,473, as compared to a loss of US$720,569 in FY01. This extraordinary improvement in year-end results was due to stringent cost controls and the development of alternative revenue sources.

* International Conference: 1,518 attendees from 35 countries networked and enhanced their professional development. The conference had an expanded exhibit hall and increased sponsor support.

* Webinars: In response to members' request for more distance learning opportunities, the association launched monthly webinars in partnership with James Lukaszewski, ABC, APR. Site registrations totaled more than 1,600.

* Regional conferences: Staff and board members supported regional conferences in Asia/Pacific, Canada, Europe, Sub-Saharan Africa and U.S. District 5.

* Leadership Institute: This session provided 161 chapter and association leaders with inspiration and ideas to use in their leadership roles.

* Gold Quill Awards: A record 1,347 entries from 19 countries were submitted; 124 Gold Quill winners were named.

* Web site: The updated web site now allows members to join and renew online.

* Job Centre: This full-featured addition to the web site includes resume posting and searching. The Job Centre is the most heavily trafficked area of our web site.

* Knowledge Products: IABC released "The Internet Advantage" by Shel Holtz, ABC, as well as second editions of four popular knowledge resource titles.

* Member survey: "Profile 2002," commissioned by the IABC Research Foundation and conducted by L.C. Williams & Associates, asked members about the latest trends in their companies and jobs. Communicators reported overall job satisfaction and consistent access to senior management, despite modest salary increases and tight budgetary environments. Although technology is relied on to disseminate information, the high-tech trend is also driving an increased desire for more face-to-face interactions. More ABC members reported that their organizations are pursuing formal measurement of communication efforts.

The world changed in FY02. So did ABC. And the world continues to change in FY03. What has not changed is ABC's focused effort to provide essential content and connections for professional communicators, It was our commitment in FY02; it is our pledge in the coming fiscal year.

FINANCIAL STATEMENT

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION SEPTEMBER 30, 2002 AND
2001

All amounts in US$.

                                                    2002          2001

ASSETS
CASH AND CASH EQUIVALENTS
(Includes restricted cash of $500,000 in
 2002 and $250,000 in 2001)                    $ 535,051     $ 816,830

ACCOUNTS RECEIVABLE
Net of allowance for doubtful accounts
 of $0 in 2002 and $15,556 in 2001                20,821        56,170

INVENTORY                                         48,917        52,959

PREPAID EXPENSES AND OTHER ASSETS                 46,162        35,678

FURNITURE, EQUIPMENT AND LEASEHOLD
 IMPROVEMENTS, Net                                86,628       234,498

TOTAL ASSETS                                   $ 737,579    $1,196,135

LIABILITIES AND NET ASSETS
LIABILITIES
 Accounts payable                              $ 352,666    $1,005,483
 Line of credit                                  170,000            --
 Accrued expenses                                 87,434       133,045
 Deferred dues revenue                         1,392,025     1,280,535
 Capital lease obligations                        42,596        61,741
  Total liabilities                            2,044,721     2,480,804

NET ASSETS
 Unrestricted                                (1,323,303)   (1,300,830)
 Temporarily restricted                           16,161        16,161
  Total net assets (accumlated deficit)      (1,307,142)   (1,284,669)

TOTAL LIABILITIES AND NET ASSETS               $ 737,579    $1,196,135

CONSOLIDATED STATEMENTS OF ACTIVITIES
 AND CHANGES IN NET ASSETS YEARS ENDED
 SEPTEMBER 30, 2002 AND 2001

                                                    2002          2001

CHANGES IN UNRESTRICTED NET ASSETS
Revenue and support
 Membership dues and fees                     $2,245,776    $2,512,327
 Conferences, seminars and awards              1,889,235     1,920,201
 Information resources and publications          440,107       500,490
 Advertising, exhibit and list rental             48,537        72,923
 Interest and dividends                           15,348        31,259
 Contributions                                    23,972        33,293
 Other revenue                                    97,483        67,113
 Net assets released from restrictions                --         2,500
  Total revenue and support                    4,760,458     5,140,106

Expenses
 Program expenses
  International and other conferences          1,099,279     1,381,976
  Membership                                     603,952       687,902
  Information resources                          468,358       419,424
  Communication World                            352,721       374,005
  Seminars                                       313,116       410,702
  Research and information                       171,557       169,585
  International development                      263,552       191,494
  Gold Quill Awards                              168,903       175,177
  Public relations                                80,116       117,532
  Leader services                                 68,962       104,444
  Leader/chapter visit                            45,806        73,583
  Advertisements and exhibits                     30,086        74,569
  Accreditation                                   28,686        45,961
  Other professional development                       -        24,974
    Total program expenses                     3,695,094     4,251,328

  General administration                         932,130     1,123,181
  Executive Board                                124,577       212,186
  Web development                                  4,785       263,393
  Fundraising                                     26,345         8,087
    Total expenses                             4,782,931     5,858,175

DECREASE IN UNRESTRICTED NET ASSETS             (22,473)     (718,069)

DECREASE IN TEMPORARILY RESTRICTED NET
 ASSETS
Net assets released from restrictions                  -       (2,500)

DECREASE IN NET ASSETS                          (22,473)     (720,569)

NET ASSETS (ACCUMULATED DEFICIT),
 BEGINNING OF YEAR                           (1,284,669)     (564,100)

NET ASSETS (ACCUMULATED DEFICIT), END OF
 YEAR                                       $(1,307,142)  $(1,284,669)

CONSOLIDATED STATEMENTS OF CASH FLOWS
 YEARS ENDED SEPTEMBER 30, 2002 AND 2001

                                                    2002          2001

CASH FLOWS FROM OPERATING ACTIVITIES
 Decrease in net assets                       $ (22,473)   $ (720,569)
 Adjustments to reconcile decrease in net
  assets to net cash provided by (used in)
  operating activities:
    Depreciation and amortization                152,284       291,721
    Loss on disposal of fixed assets                   -       138,757
    Change in assets and liabilities:
      Accounts receivable                         35,349        98,390
      Contributions receivable                         -         8,000
      Inventory                                    4,042      (11,789)
      Prepaid expenses and other assets         (10,484)       (9,273)
      Accounts payable                         (652,817)       580,275
      Accrued expenses                          (45,611)     (108,187)
      Deferred dues revenues                     111,490      (40,814)
       Net cash (used in) provided by          (428,220)       226,511
        operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchases of equipment                          (4,414)      (35,671)

CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on capital leases           (19,145)      (73,809)
 Proceeds from borrowings under line of          170,000             -
  credit
      Net cash provided by (used in)             150,855      (73,809)
       financing activities

NET (DECREASE) INCREASE IN CASH AND CASH       (281,779)       117,031
 EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF          816,830       699,799
 YEAR

CASH AND CASH EQUIVALENTS, END OF YEAR         $ 535,051     $ 816,830

SUPPLEMENTAL CASH FLOW DISCLOSURE
 Cash paid for interest                          $ 6,643       $ 9,677

This summary of financial information has been extracted from the IABC
consolidated audited financial statements, on which an independent
public accounting firm has expressed an unqualified opinion. To obtain
copies of the complete audited financial statements, please contact IABC
World Headquarters.