2007 Report of the ASHP Treasurer

Abstract

We are stronger . . . because the Board has demonstrated its willingness to commit the Society’s resources to advancing and supporting the professional practice of pharmacists. The Society’s financial year runs from June 1 through May 31 to coincide with the Society’s policy development year. Because the fiscal year ends May 31, the Treasurer has three financial periods to cover in the annual report: (1) final audited prior-year numbers (for the fiscal year 2006), (2) current year (2007) projected performance, and (3) budget for the fiscal year ending May 31, 2008. The audit of the financial statements of the Society and the Society’s subsidiary, the 7272 Wisconsin Building Corp., resulted in an unqualified opinion. Copies of the audited statements can be obtained by contacting the ASHP Executive Office. Last year I reported that the Society was expecting a $1.717 million surplus for the 2006 fiscal year. We actually ended the year with a $5.147 million surplus: $1.655 million from core operations and $3.492 million from the program development budget (Figure 11). A greater-than-expected return in our long-term investment portfolio and a $1.841 million credit removing a minimum pension liability recorded in prior years accounted for 82% of the difference between our actual and forecasted year-end results. With the $5.147 million surplus, the Society’s net worth increased to $41.706 million (Figure 2 2), or 91% of total ASHP and 7272 expense. (7272 expense represents the expense of the Society’s wholly owned subsidiary, the 7272 Wisconsin Building Corp.) Our policy is to maintain net worth at 75% of total ASHP and 7272 expense, with a ceiling of 90% and a floor of 60%.