Highlights of the FY15 Budget
The budget has been prepared on a cash basis. This basis is important to reflect the ability for an organization to meet its true financial obligations, regardless of whether the cash outlay is a true “expense” or merely balance sheet accounting. The FY15 budget prioritizes the direction of the BODs and is based on conservative estimates of both revenues and expenses. The FY15 balanced budget is presented at $18.97M, about three percent lower than the FY14 budget of $19.56M. Nearly 75 percent of FY15 revenue, $14.06M, is budgeted to come from two major areas: membership dues and Annual Meeting revenue. Membership dues include a calendar year 2015 dues increase. Annual Meeting registration revenue is budgeted slightly higher than Vancouver but this is offset by a reduction in Instruction Course fees, mainly due to the change in the Annual Meeting length. Budgeted revenue reductions are in royalties income, which is primarily due to a change in presentation of Bulletin royalties, which are now reflected net of expenses, and corporate and individual support, which reflects the expected continued decline of unrestricted giving. As presented, overall revenues are down as compared to FY14; however, an ongoing commitment has been made to focus on increasing revenues as a result of new products and services. To balance the budget with the expected reduction in revenue sources, operating expenses had to be thoroughly reviewed, streamlined, and affirmed as related to the strategic plan. The expenses for the AAO-HNS/F are separated into two areas. The first area includes direct operating costs relating to each business unit; these are costs directly related to carrying out the priorities of the strategic plan and other ongoing mission-related programs. Two programs to be eliminated in FY15 are Partners for Progress (PfP) and Patient Management Perspectives in Otolaryngology (PMP). Also in FY15, the Washington, DC, office will be closed, although a small work space will be retained. In addition, the FY15 budget includes expenses related to expanding Quality Measures Development and added support to create a plan for the development of a comprehensive curriculum for otolaryngology. The second area, allocated costs, relates to staffing and benefits as well as the operating costs that are incurred for the good of the whole organization, such as occupancy and building-related expenses, and organizational-wide HR, financial, and IT costs. Overall, allocated costs have increased due to inflation, contractual commitments, and salary adjustments; direct operating expenses have decreased due to the location of the 2014 Annual Meeting & OTO EXPOSM and streamlining other expenses. The complete budget is available to any Academy member who requests it in writing. Email requests to Brenda S. Hargett, CPA, CAE, COO, to bulletin@entnet.org.
The budget has been prepared on a cash basis. This basis is important to reflect the ability for an organization to meet its true financial obligations, regardless of whether the cash outlay is a true “expense” or merely balance sheet accounting. The FY15 budget prioritizes the direction of the BODs and is based on conservative estimates of both revenues and expenses. The FY15 balanced budget is presented at $18.97M, about three percent lower than the FY14 budget of $19.56M.
Nearly 75 percent of FY15 revenue, $14.06M, is budgeted to come from two major areas: membership dues and Annual Meeting revenue. Membership dues include a calendar year 2015 dues increase. Annual Meeting registration revenue is budgeted slightly higher than Vancouver but this is offset by a reduction in Instruction Course fees, mainly due to the change in the Annual Meeting length. Budgeted revenue reductions are in royalties income, which is primarily due to a change in presentation of Bulletin royalties, which are now reflected net of expenses, and corporate and individual support, which reflects the expected continued decline of unrestricted giving. As presented, overall revenues are down as compared to FY14; however, an ongoing commitment has been made to focus on increasing revenues as a result of new products and services.
To balance the budget with the expected reduction in revenue sources, operating expenses had to be thoroughly reviewed, streamlined, and affirmed as related to the strategic plan. The expenses for the AAO-HNS/F are separated into two areas.
The first area includes direct operating costs relating to each business unit; these are costs directly related to carrying out the priorities of the strategic plan and other ongoing mission-related programs. Two programs to be eliminated in FY15 are Partners for Progress (PfP) and Patient Management Perspectives in Otolaryngology (PMP). Also in FY15, the Washington, DC, office will be closed, although a small work space will be retained. In addition, the FY15 budget includes expenses related to expanding Quality Measures Development and added support to create a plan for the development of a comprehensive curriculum for otolaryngology.
The second area, allocated costs, relates to staffing and benefits as well as the operating costs that are incurred for the good of the whole organization, such as occupancy and building-related expenses, and organizational-wide HR, financial, and IT costs. Overall, allocated costs have increased due to inflation, contractual commitments, and salary adjustments; direct operating expenses have decreased due to the location of the 2014 Annual Meeting & OTO EXPOSM and streamlining other expenses.
The complete budget is available to any Academy member who requests it in writing. Email requests to Brenda S. Hargett, CPA, CAE, COO, to bulletin@entnet.org.