Proposed Fiscal Year 2021 (FY21) Combined Budget
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, 2020–June 30, 2021 (FY21), and endorsed it for approval by the BODs. During their May meeting, the BODs reviewed and conditionally approved the FY21 budget that is presented here to the membership.
Kenneth W. Altman, MD, PhD, AAO-HNS/F Secretary-Treasurer
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, 2020–June 30, 2021 (FY21), and endorsed it for approval by the BODs. During their May meeting, the BODs reviewed and conditionally approved the FY21 budget that is presented here to the membership.
Budgeting for FY21 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 FY21 budget is structured to meet the strategic plan goals of the AAO-HNS/F and to 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 FY20 budget year. Based on this information, it is projected that the FY20 actual results will be within budget.
Highlights of the FY21 Budget
The FY21 balanced budget is proposed at $18.8 million, with $17.2 million funded from operating revenues and $1.6 million funded from Board-designated net asset reserve funds. Member dues remain at the same rate as the past three years. Annual Meeting revenues are budgeted conservatively in recognition of the impact the coronavirus may have on meeting attendance. Education and other product sales are budgeted to include the new FLEX product and phase out of the Home Study Course. Royalties and advertising revenues continue from publishers of the Otolaryngology–Head and Neck Surgery and the Bulletin. Other revenues include royalties from our Academy Advantage partners, the new Corporate Champions program, and donor contributions to the Foundation’s Annual Fund.
The Board has designated net asset reserves for use in the FY21 budget to fund $750,000 of operating expenses, $695,000 of Reg-entSM technology costs, and $120,000 for redesign and upgrade of the Academy’s main website.
Operating expenses are budgeted 1.3% more than the prior year attributed to higher Annual Meeting costs for the Boston venue. Delivering the world’s best otolaryngology education program continues to be a priority in the allocation of budget resources.
Subsequent to the preparation of the FY21 budget, the new Academy Cares program was introduced in response to the hardships created by the coronavirus for our members. This program, which is estimated to cost approximately $800,000, will be funded from net asset reserves that were accumulated as a result of positive operating variances in prior years. This use of reserves will be spread over fiscal years FY20 and FY21 and is not included in the presented budgets.
The complete budget is available to any Academy member who requests it in writing. Email requests should be made to Carrie Hanlon, CPA, Senior Director, Finance and Administration, at bulletin@entnet.org.
