Fiscal Year 2000 was a highly successful year for the College. Our operating profit of $52,721 for the year compares to an average annual operating loss of nearly $70,000 per year for the last five years. Our total excess of revenues over expenses – which includes unrealized gains on investments – was $117,651. This represents an impressive 24% increase in our fund balance.

Our financial success means that we achieved the goal set by the Board at the end of Fiscal Year 1998. That goal was to eliminate within two years what was then a $163,000 annual operating deficit.

Unfortunately, though, one year does not a trend make. While we can celebrate our success, we need to understand that we have major financial challenges ahead, and we need to continue to be diligent in looking for new sources of revenue and for ways to keep expenses low. For example, in Fiscal Year 2001, we expect to incur moving expenses of $18-20,000 plus increased rent expense of $24,000. Our rent expense will increase an additional $17,000 in the following year.

In addition, we have grant revenues that will expire this fiscal year that need to be replaced to sustain current levels of effort. In fact, our surplus this year was due largely to grant revenues we received that have not yet been offset by associated expenses.

Finally, it is important to understand that the attached financial results for Fiscal Year 2000 represent unaudited figures. We have consulted with the auditors, who believe that these numbers are accurate. However, the auditors have been delayed for reasons beyond our control, and until they complete their work, these numbers should be considered preliminary.

Summarized below is additional explanatory information about our financial results.

Grants and contracts: Our grant revenues were lower than we had originally projected. This is not a result of having fewer grant dollars in hand than projected; rather, it is a result of us having spent these funds more slowly than originally projected. This does not result in a higher deficit, however, because lower revenues mean lower expenses as well. Grant revenues from private corporations, unlike federal grants, are recorded as revenue at the time they are received, not at the time they are spent. Thus, we have approximately $75,000 in grant revenues that have been recorded as revenues but that will appear as expenses next year.

PREVENTION 2000/Preventive Medicine 2001: PREVENTION 2000 revenues were lower than originally projected due primarily to fewer registrations. With expected greater success in obtaining sponsors for Preventive Medicine 2001, our revenues should exceed PREVENTION’s revenues. We will not know until February, however, how our new annual meeting attendance compares to PREVENTION, but we are aggressively marketing the meeting and projecting that we will bring in new registrants from other medical and nursing specialties

Membership dues: As projected at the Spring Board meeting, our membership dues declined by nearly $25,000. This is due in part to restructuring the membership year for residents so that it coincides with the September 1 – August 31 membership year for all other members. We are still trying to determine the cause of the remainder of the decline. Possible reasons are an unusually high number of member and Fellows who converted to emeritus status and continuing data base problems that could potentially mask a small decline in membership. One other apparent reason for the shortfall is that new members who joined in conjunction with PREVENTION were not recorded until several months later. Because they had not received membership benefits, they were given credits for their initial membership payment.