Proposed Fiscal Year 2023 (FY23) Combined Budget
The BODs have reviewed and conditionally approved the FY23 budget that is presented here to the membership.
The Executive Committees (ECs) of the AAO-HNS/F Boards of Directors (BODs) were presented with the Finance and Investment Subcommittee (FISC) proposed budget for the next fiscal year, July 1, 2022 – June 30, 2023 (FY23), and endorsed it for approval by the BODs. During their April meeting, the BODs reviewed and conditionally approved the FY23 budget that is presented here to the membership.
Budgeting for FY23 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 FY23 budget is structured to meet the AAO-HNS/F Strategic Plan goals 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 FY22 budget year. Based on this information, it is projected that the FY22 actual results will be within budget.
Highlights of the FY23 Budget
The FY23 balanced budget is proposed at $19.7M. Operating revenues are budgeted to fund $16.2M of expenses and Board Designated Net Assets to fund the remaining $3.5M. The BODs approved using accumulated net assets to retain all current programming, as an alternative to increasing member dues, Annual Meeting registration fees, or other fee-based offerings. Annual Meeting costs for the FY23 meeting in Philadelphia, Pennsylvania, will be higher than average, mostly due to convention center related costs. Also, as the return to in-person meetings is expected to be gradual, Annual Meeting registration is budgeted at approximately 75% of pre-pandemic levels. With higher costs and lower than average revenues, the FY23 Annual Meeting is the main driver of the need to use accumulated net assets to balance the FY23 budget. The Board also approved the use of accumulated net assets to fund Reg-entSM technology costs, as has been done in past years.
Member Dues are budgeted slightly below the prior year reflecting an increase in retiring members. Calendar year 2023 will be the sixth year without a membership dues increase. Education and Other Product Sales, largely revenue from FLEX subscriptions, are budgeted equal to actual sales in FY22. Publication Revenues are based on contractual agreements with publishers of the journals, Otolaryngology–Head and Neck Surgery and OTO Open, and the Bulletin, both of which will be up for contract renewal in FY23. The guarantees under the renewal contracts are expected to be at slightly lower levels in both cases. Other revenues include royalties from Academy Advantage partners, corporate support not related to the Annual Meeting, and donor contributions to the Foundation’s Annual Fund. In FY22, revenues and expenses related to the Pan American Congress, a non-recurring meeting, are included in Other Revenues and Other Expenses. No revenue or expenses for this meeting are budgeted in FY23.
Donor Restricted Net Assets are budgeted to support $215K of programming, including CORE grants, Annual Meeting lectures, travel grants for residents, humanitarian efforts, and International Visiting Scholars.
The complete budget is available to any Academy member who requests it in writing. Email requests to Carrie Hanlon, CPA, Senior Director, Finance and Administration, at firstname.lastname@example.org.