Proposed Fiscal Year 2022 (FY22) Combined Budget
The Executive Committees of the Boards of Directors were presented with the Finance and Investment Subcommittee proposed budget for the next fiscal year.
The Executive Committees (ECs) of the Boards of Directors (BODs) were presented with the Finance and Investment Subcommittee (FISC) proposed budget for the next fiscal year, July 1, 2021-June 30, 2022 (FY22), and endorsed it for approval by the BODs. During their April meeting, the BODs reviewed and conditionally approved the FY22 budget that is presented here to the membership.
Budgeting for FY22 represents the collaborative work of both the staff leadership and the members of the FISC to match stable funding to the mission we aspire to accomplish. The proposed FY22 budget is structured to meet the Strategic Plan goals of the AAO-HNS/F and continue to provide member services in the most effective and efficient way possible.
In early spring, the FISC reviewed financial results for the first six months of the FY21 budget year. Based on this information, it is projected that the FY21 actual results will be within budget.
Highlights of the FY22 Budget
The FY22 balanced budget is proposed at $19.6M. Operating revenues are budgeted to fund $16.6M of expenses and Board Designated Net Assets to fund the remaining $3M. The Board approved the use of net assets to support the higher costs of a hybrid Annual Meeting and potential lower in-person attendance. An offsetting addition to net assets, in an equal or greater amount than budgeted to be used in FY22, is expected from the insurance cancellation coverage related to the 2020 Annual Meeting. The Board also approved the use of net assets to fund Reg-entSM technology costs, as has been done in past years.
Member dues are not budgeted to increase and remain at the same rate as the last five years. Annual Meeting revenues are budgeted below average to account for the impact of COVID-19 travel restrictions and other related factors. Education and other product sales include an increase in FLEX purchases, which exceeded budget in the prior year. Royalties and advertising revenues continue from publishers of Otolaryngology–Head and Neck Surgery, OTO Open, and the Bulletin. Other revenues include royalties from Academy Advantage partners, the new Corporate Champions program, and donor contributions to the Foundation’s Annual Fund. In FY22, revenues related to the Pan American Congress are also included in other revenues. Expenses for this meeting are budgeted in an equal amount such that the net results of the Pan American Congress are budget neutral.
The prior year’s budget included a one-time $1M contingency for the potential impact of the developing coronavirus on Annual Meeting revenues. No similar contingency is budgeted in FY22 since lower Annual Meeting revenues are budgeted to take this into account.
The complete budget is available to any Academy member who requests it in writing. Send email requests to Carrie L. Hanlon, CPA, Senior Director, Finance and Administration, at firstname.lastname@example.org.