At the November 1999 Board meeting, the Board reaffirmed its goal of eliminating ACPM’s operating deficit. The Board recognized, however, that achieving this goal in the current fiscal year would result in an extremely tight operating budget. Thus, the Board authorized giving ACPM the flexibility to incur a deficit of up to $25,000 in order to be able to invest in high priority activities.

We have done a good job of controlling our operating expenses, but a potential shortfall in revenues is making it questionable whether we will be able to keep the operating deficit below $25,000. There are two areas in which our revenues appear to be falling short of projections. First, our membership revenues are about $28,000 behind where they were at this time last year. Membership Committee members have been asked to call delinquent members (and regional regents are likely to be called upon to assist in this effort), but our deficit will be greater than anticipated unless our membership revenues increase. Second, registrations for the PREVENTION meeting have been lower than expected. We had originally projected revenues of $220,000 but, based on recent registration numbers, may only have revenues in the $200,000 range. Depending on our success in increasing membership revenues and in getting last-minute registrations, we may be facing an operating deficit of as high as $55,000.

Included below is additional explanatory information about the attached budget.

Membership dues: At the beginning of the year, we projected membership dues of $360,000. Our actual dues to date, based on previous years’ trends, would leave us $25-30,000 below that number. We are beginning aggressive efforts that we hope will help us achieve our original projection.

Grants and contracts: Our grant revenues to date are lower than we had originally projected. Our lower grant revenue is not a result of us 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.

PREVENTION 2000: Revenues are likely to be lower than expected due to lower registrations and lower exhibitor revenue. This is despite the fact that corporate support for the meeting – one of the areas for which ACPM assumed the lead – is now close to $60,000, compared to $9,000 last year.

Review course: The amount of revenues over expenses are projected to remain fairly constant in 2000.

Policy: Expenses are projected to be lower in 2000 than in 1999 because our policy staff is now working on reimbursable grant activities in addition to unreimbursable policy activities.

Staffing: We currently have a staff of 6 FTE’s but have held off on hiring an additional FTE because of budget constraints.