AAACN 2001 financial profile

As Treasurer, I am reporting to you on AAACN's financial status at the close of fiscal year (FY) 2001. An independent audit of AAACN's statements of assets, liabilities, and fund balance was conducted by Certified Public Accountants Gold, Meltzer, Plasky, & Wise. This audit concluded that our financial statements "presented fairly, in all material respects, the assets, liabilities, and fund balance" as of June 30, 2001.

Compared with FY 2000, there was a 2% decrease in total revenues, primarily a result of decreases in membership and annual conference revenues. The Board of Directors is taking active measures to increase membership, and the membership has recently changed the AAACN bylaws to allow for new categories of membership. Although this membership decrease is consistent with national trends, a market survey was recently conducted to attempt to define a root cause for the attrition of members. Annual conference revenue was down, secondary to fewer registrations and a decrease in exhibit and grant income. This is also consistent with national trends.

There was a decrease in revenue related to educational offerings and publications. This is related to the transition to new products in each of the areas where revenues have decreased. Several publications are under revision, or have been replaced by the new Core Curriculum for Ambulatory Care Nursing text. Revenues from the core curriculum have not yet been realized. The Ambulatory Care Certification Review Course and the Telehealth Nursing Practice Core Course (TNPCC) are both being converted to an electronic format to make it more convenient for members to participate in these offerings.

Other revenues included income from Viewpoint advertising and subscriptions, as well as investment income. Viewpoint revenue was up 17%, as a result of corporate sponsorship of several issues. Interest and dividend income was down 28%, which is consistent with current economic trends. The gain on the sale of investments was $10,377.

Due to a significant effort to contain expenses, total expenses remained constant from FY 2000 to FY 2001. Member service expenses increased by 10%, which is consistent with the AAACN strategic plan. The largest member service increase in expense (29%) was related to Internet charges due to significant enhancements to the AAACN Web site. Viewpoint expenses also increased, as a result of expanded issues and efforts to market subscriptions to non-members, but were offset by sponsorships of specific issues.

Additional member service expenses included the printing of the revised Telehealth Nursing Practice Administration and Practice Standards and external professional relations fees. Expenses for educational programming and materials decreased by 7%. While significant monies were used for the development of the TNPCC, total education expenses were down due to the annual convention and not having an education director for several months. There was a 2% increase in administrative expenses, primarily due to a need for additional management, secretarial, and legal services.

Total expenses amounted to $561,446. Expenses in excess of revenues were $43,141, which required a planned allocation from dedicated reserves. The AAACN fund balance as of June 30, 2001 was $319,341.

Kathleen P. Krone, MS, RN AAA CN Treasurer

Copyright American Academy of Ambulatory Care Nursing Sep/Oct 2001
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