Happy New Year to all of you. I like to start the new year with pleasant news about the AAPM finances. AAPM finances continue to be on solid grounds, still it is essential to watch our revenues and expenses along with the overall trends in the fixed expenses of our association. The current year has been quite active in terms of the implementation of both Financial Management System (FMS) and the Association Management System (AMS). We were able to roll out the two systems on time, despite some challenges, thanks to our dedicated staff, who spent a considerable amount of time on this project. In spite of the enormousness of the task, I am happy to report that the process of identifying, selecting and implementing the two systems (AMS and FMS) happened in record time. For this I would like to compliment and recognize the efforts of all of the AAPM staff.

Financial Position and Estimates for 2018

As of October, we anticipate that AAPM will finish the year with a modest surplus from operations. This is after factoring a reduced spending pattern within the councils and committees through the end of the year and overall historical spending in the last two months of the year. Even so, we will not know the final numbers for the next several weeks.

Compared to approved budgeted revenue of $9.45 million and expenses of $10.40 million, the revenue and expenses are estimated at $9.63 million and $10.52 million respectively. For the year, annual meeting expenses came in nearly $150,000 below budget, contributing to a net favorable return to the association of nearly $151,000. Additionally, membership dues for year exceeded the budget by a little over $60,000. Offsetting these positive variances, certain costs associated with the Association Management System (AMS) and Financial Management System (FMS) conversions had to be immediately expensed according to Generally Accepted Accounting Principles (GAAP). It was anticipated during the budget process that these costs could be capitalized and written off over several years. It should be noted that the entire process is coming in below budgeted costs.

At present, AAPM's investment portfolio has experienced gains and losses during the course of the year. As of October 31, 2018, the reserve fund balance exceeds $13.8M.

2019 Budget

I would once again like to thank the Council and Committee Chairs and their liaisons who worked extremely hard together in developing their budgets. The entire Finance Committee reviewed the 2019 budget with the Council Chairs and eventually approved the initial draft of the budget. After hearing appeals from the councils, the final budget was approved and submitted to the Board. The Board approved the 2019 budget during its meeting in Chicago at RSNA.

The 2019 budget summary is included with this report. Revenue projections total $10.13 million and expenses total $11.11 million, with a budgeted deficit of $976,927. The statistical model predicted a deficit of $946,670 which is based upon AAPM complying with the financial covenants established by TD Bank, the mortgage holder for the new HQ building. Given our normal under-spending patterns, the Finance Committee felt that the approved deficit would allow for AAPM to operate and still meet the bank covenants and operate at or near break-even from Operations.

AAPM's Finance Committee, Strategic Planning Committee and the Board feel that this conservative budget allows for AAPM to achieve its strategic initiatives and yet meet its fiscal responsibilities to the bank at the same time.

Below you will find a graphical presentation of the 2019 budgeted revenues by category (including which programs are included in the various categories).

In closing, I would like to thank Robert McKoy and all the AAPM Finance staff for all their help during this past year, and in making the budgeting process and the job of Treasurer manageable. Please feel free to reach out to me via email me at or call me at 410-955-5115 or tweet me if you have any questions concerning this report.