Board Reports

Secretary-Treasurer's Report

John Rogers, MD, MPH

As Secretary-Treasurer, I have worked with the Finance Committee on developing a long-range financial plan and with Roger Sherwood and other STFM staff on annual budget matters. As a member of the Executive Committee, I worked with other Board members on developing objectives for the quality improvement goal in STFM’s Strategic Plan. As a member of the Board, I have cochaired a steering committee to plan a preconference at the Annual Conference on the New Model of Family Medicine.

With regard to financial issues, the Strategic Planning committee called on the Finance Committee to develop a long-range financial plan. The goals of this plan include (1) a balanced budget, (2) balancing the budget within sectors, (3) that the cost of business operations should not exceed regular business income, (4) fees should be reviewed regularly and other income sources investigated, and (5) strategic reserves should be maintained. This plan is now guiding the Finance Committee’s efforts.

After 2 years of budget deficits, STFM continued to face financial challenges in FY 2004 but is making progress toward balanced budgets. The operating budget for 2004 called for income of $2,573,825 and expenses of $2,588,600. The largest anticipated income sources were meetings and workshops, membership dues, federal contracts, and publications. The largest anticipated expenses were personnel, meetings and workshops, federal contracts, office operations, publications, and Board and committee meetings.

For FY 2004, STFM’s income was $2,836,852 ,and expenses were $2,841,561. After adjustments for changes in market value of our investments and the addition of the surplus of income over expenses for federal contracts, the FY 2004 deficit was $124,796, which is less than half of the FY 2003 deficit of $259,977 and well below the FY 2002 deficit of $213,000. The Board directed Roger Sherwood and I to report in detail on the efforts to achieve a balanced budget. The list of savings and increased revenues implemented by volunteers and staff is nearly four pages long. There is no one major area of expenses that can be easily eliminated or one way to bring in lots of money. Yet there are prior commitments, such as supporting the Annals of Family Medicine and endings of federal contracts that substantially affect the balance sheet. As with any budget, diligent attention to seemingly little details will be how we return to balanced, even surplus, budgets. The Finance Committee and I welcome your suggestions and ideas.