Annual Report 2011: FY July 1, 2010-June 30, 2011
Treasurer
AAPG’s Fiscal Year 2011 (July 1, 2010 through June 30, 2011) was projected to be a complete departure from the previous (and very challenging) year, and such were the financial results. In preparing the annual budget, we had the luxury of being slightly positive in our projections, encouraged by the scheduling of our ICE event in Calgary and our ACE in Houston. Both locations are traditionally very strong locations for sponsorship, exhibition and attendance, as they proved to be once again.
Our budget expectations were exceeded, thanks to the help of the AAPG staff, who worked to reduce our overall costs significantly, particularly on the meetings and events. This led to a profitable year which helped to offset some of the loss we endured the year before. We are currently in the middle of our financial audit , however, our surplus is anticipated to exceed our budget for the year.
On the revenue side, we enjoyed growth in dues, advertising income, education and convention activities. We also benefitted from a positive return from our investment in the NAPE meetings, Datapages, Inc. and the International Pavillion, LLC. Although somewhat short of our budgeted goal on membership dues and membership growth, we did exceed the previous year.
Expenses were budgeted at nearly $17,700,000, up from $17 Million in fiscal year 2010. We challenged ourselves and the entire staff to trim expenses while still delivering a high level of member benefits, and I believe we succeeded in this regard. As a result of these efforts, our overall expenses for the year were just under $16 Million, with the conferences and meetings showing the biggest savings at nearly $1.5 Million favorable to budget. This is the result of some very pro-active savings and diligent efforts by the team in the convention department.
All in all, we are satisfied with the financial results of Fiscal Year 2011 and the positive effect it will have on our ability to continue to deliver outstanding services to you, the members. Unfortunately, the upcoming year again presents us with challenges. We are enduring a roller-coaster ride in the stock market, which affects our operating funds investment holdings as well as our pension liability. While we anticipate good financial outcomes from both the ICE in Milan and the ACE in Long Beach, and continued success in Education, we are expecting a shortfall for FY 2012, and we continue to seek out ways to both increase revenues and reduce expenses.
Respectfully submitted to the membership.
Jim McGhay, Treasurer
| General Fund FY 2009-10 |
General Fund FY 2010-11 |
Budget FY 2010-11 |
|
Operating Income |
|||
| Dues | $1,946,891 | $2,277,034 | $2,461,866 |
| BULLETIN Subscription | 267,850 | 261,975 | 301,200 |
| Advertising Income | 1,500,346 | 1,576,026 | 1,521,216 |
| Sales of Publications | 587,292 | 526,430 | 644,800 |
| Interest and Dividends | 195,691 | 354,315 | 221,000 |
| Investment Income from NAPE | 477,727 | 540,626 | 480,000 |
| Education and Misc. Service Fees | 2,940,852 | 3,209,971 | 4,029,759 |
| Conferences and Meetings | 5,991,218 | 6,483,115 | 6,104,049 |
| Page Contributions | 5,186 | 4,820 | 5,040 |
| Gain (Loss) on Datapages | (131,315) | 170,998 | 69,817 |
| Gain (Loss) on International Pavilion | 5,955 | 35,400 | 30,000 |
| Grant Income | 1,024,834 | 1,030,385 | 1,064,390 |
| Miscellaneous | 397,469 | 804,003 | 806,412 |
| Total Operating Income | $15,209,996 | $17,275,098 | $17,739,549 |
Operating Expenses |
|||
| Salaries | $ 3,437,822 | $ 3,864,380 | $ 3,865,850 |
| Employee Benefits | 1,646,479 | 1,655,516 | 1,404,084 |
| Publishing Cost of BULLETIN | 208,900 | 218,993 | 264,000 |
| Publishing Cost of EXPLORER | 197,222 | 198,438 | 245,280 |
| Cost of Special Publications Sold | 177,817 | 237,135 | 195,976 |
| General Office Expense | 1,022,298 | 1,032,947 | 1,117,834 |
| Postage and Shipping | 635,149 | 642,718 | 737,976 |
| Building Expense | 248,856 | 296,513 | 243,554 |
| Professional Fees | 1,861,412 | 1,971,971 | 1,947,892 |
| Staff Travel | 404,920 | 357,403 | 415,051 |
| Professional Travel | 1,033,001 | 1,379,618 | 1,215,062 |
| Conferences and Meetings | 5,038,756 | 3,223,687 | 4,707,027 |
| Depreciation | 163,141 | 167,062 | 204,780 |
| AGI Dues | 70,599 | 12,544 | 60,000 |
| Meeting Presence/Display | 30,922 | 5,917 | 45,955 |
| Miscellaneous Grants and Awards | 344,017 | 224,728 | 491,847 |
| Miscellaneous | 464,595 | 492,869 | 537,027 |
| Total Operating Expenses | $16,985,906 | $15,982,350 | $17,699,945 |
| Income (Loss) From Operations | $(1,775,910) | $ 1,292,748 | $ 39,604 |
| Assets | $14,679,625 | $17,158,035 | |
| Liabilities | 6,567,699 | 4,835,049 | |
| Fund Balance | 8,111,926 | 12,323,004 | |
| Total Liabilities and Fund Balance | $14,679,625 | $17,158,053 | |
The figures reflected above in the FY 2010-2011 are preliminary, as the audit, and the audit of all the required affiliates and subsidiaries has not been completed at the time this statement went to print.