finance and audit committee describes reasons members should support proposed dues increase

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SEPTEMBER 1994. VOL 60, NO 3 ( l)\l\ll I I ! I lil I l ) l < ! Finance and Audit Cornmiflee describes reasons members should support proposed dues increase hen the Finance and Audit Committee convened in June to review the proposed 1994- 1995 budget. the Committee mem- bers received this message: AORN has had a decrease in membership. We have lost 1.0oO members since Congress. Our response wah to ask three questions: "Is this information accurate'?" "What is going on'?'' and "Why?" The Center for Member Services analyzed the data and identified two predominant reasons for nonrenew- al of memberships: nurses no longer were worhng in the OR (36%) and nurses were retiring (I 3%). We questioned whether this recent membership decrease was a fluke or a trend. The data indicate that mem- bers who 110 longer work in OR set- tings believe they are no longer eli- gible for membership in the Associ- ation or that they will not benefit from continuing their AORN mem- berships. Faced with reviewing the proposed budget, we discussed what assumptions were safe or appropriate to make about our pro- jected membership numbers. A CRITICAL LINK tiously. knowing that all AORN members were experiencing chal- lenges in their work environments. We recognized that during chal- lenging. turbulent times, critical lids and support systems are cru- cial to survival. The Association is one of these critical links for peri- operative nurses who are AORN members and for many nurses who The Committee proceeded cau- are potential members. The increased numbers of inquiries to the AORN Center for Nursing Practice for information and assistance underscore the vital link that the Association repre- sents. The turbulent times that we are experiencing also are affecting one of our partners in the perioper- ative arena-industry. How will the changes affect our partners in industry, and what assumptions should we make regarding their financial support of A O R " The Committee analyzed and discussed a number of factors before recommending approval of the budget. One positive factor was that AORN ended the 1993- 1994 fiscal year with a favorable rev- enue-over-expenses balance of $371,000. This balancc exceeds the projected year-end amount. To acknowledge the contributions of Headquarters staff members to this success. the Board of Directors allocated $50,OOO in year-end bonuses . Armed with budget projections and assisted by Headquarters staff members, we developed the fol- lowing assumptions. a Membership will continue to decline with a loss of 2,000 members during the 1994-199s fiscal year. Despite the decrease in mem- bership, we must continue to supply the same level of service to members and enhance these services whenever possible. w Financial support from industry will decrease by 2%. and over- all income from the 1995 Con- gress will decrease by S% from 1994. The projected Congress revenue decrease is $275,000. AORN education. consultation, and publications will have increased revenues to offset some of the anticipated losses in other categories. Committee work plans and budgets that are congruent with the AORN Strategic Plan will be preserved. Following review of the budget. the Committee recommcnded reductions in Board and staff trav- el, expanded use of OR managers and educators to augment the teni- porary needs of the Center for Perioperative Education. and pool- ing of secretarial resources at Headquarters. The approved budget for fiscal year 1994-1995 projects a positive year-end revenue-over-expenses balance of $32,000. CAPITAL BUDGET A major portion of this year's $704,660 capital budget is desig- nated for a software package. This budget item will provide AORN a sophisticated package to meet the current and anticipated future data management needs of the Association. MEMBERSHIP DUES INCREASE Association's revenue sources (Figure 1) and breakdown of expenses (Figure 2) for the current year. In most associations. dues comprise between 40% and 47% of all revenues. Current AORN The Committee reviewed the 372 AORN JOURNAL

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SEPTEMBER 1994. VOL 60, NO 3 ( l ) \ l \ l l I I ! I l i l I l ) l < !

Finance and Audit Cornmiflee describes reasons members should

support proposed dues increase hen the Finance and Audit Committee convened in June to review the proposed 1994-

1995 budget. the Committee mem- bers received this message: AORN has had a decrease in membership. We have lost 1.0oO members since Congress.

Our response wah to ask three questions: "Is this information accurate'?" "What is going on'?'' and "Why?"

The Center for Member Services analyzed the data and identified two predominant reasons for nonrenew- al of memberships: nurses no longer were worhng in the OR (36%) and nurses were retiring ( I 3%). We questioned whether this recent membership decrease was a fluke or a trend. The data indicate that mem- bers who 110 longer work in OR set- tings believe they are no longer eli- gible for membership in the Associ- ation or that they will not benefit from continuing their AORN mem- berships. Faced with reviewing the proposed budget, we discussed what assumptions were safe or appropriate to make about our pro- jected membership numbers.

A CRITICAL LINK

tiously. knowing that all AORN members were experiencing chal- lenges in their work environments. We recognized that during chal- lenging. turbulent times, critical l i d s and support systems are cru- cial to survival. The Association is one of these critical links for peri- operative nurses who are AORN members and for many nurses who

The Committee proceeded cau-

are potential members. The increased numbers of

inquiries to the AORN Center for Nursing Practice for information and assistance underscore the vital link that the Association repre- sents. The turbulent times that we are experiencing also are affecting one of our partners in the perioper- ative arena-industry. How will the changes affect our partners in industry, and what assumptions should we make regarding their financial support of A O R "

The Committee analyzed and discussed a number of factors before recommending approval of the budget. One positive factor was that AORN ended the 1993- 1994 fiscal year with a favorable rev- enue-over-expenses balance of $371,000. This balancc exceeds the projected year-end amount. To acknowledge the contributions of Headquarters staff members to this success. the Board of Directors allocated $50,OOO in year-end bonuses .

Armed with budget projections and assisted by Headquarters staff members, we developed the fol- lowing assumptions. a Membership will continue to

decline with a loss of 2,000 members during the 1994-199s fiscal year. Despite the decrease in mem- bership, we must continue to supply the same level of service to members and enhance these services whenever possible.

w Financial support from industry will decrease by 2%. and over- all income from the 1995 Con-

gress will decrease by S% from 1994. The projected Congress revenue decrease is $275,000. AORN education. consultation, and publications will have increased revenues to offset some of the anticipated losses in other categories. Committee work plans and budgets that are congruent with the AORN Strategic Plan will be preserved. Following review of the budget.

the Committee recommcnded reductions in Board and staff trav- el, expanded use of OR managers and educators to augment the teni- porary needs of the Center for Perioperative Education. and pool- ing of secretarial resources at Headquarters.

The approved budget for fiscal year 1994-1995 projects a positive year-end revenue-over-expenses balance of $32,000.

CAPITAL BUDGET A major portion of this year's

$704,660 capital budget is desig- nated for a software package. This budget item will provide AORN a sophisticated package to meet the current and anticipated future data management needs of the Association.

MEMBERSHIP DUES INCREASE

Association's revenue sources (Figure 1) and breakdown of expenses (Figure 2) for the current year. In most associations. dues comprise between 40% and 47% of all revenues. Current AORN

The Committee reviewed the

372 AORN JOURNAL

SEPTEMBER 1994, VOL 60, NO 3

Figure 1 REVENUE SOURCES 1993 [PERCENT OF TOTAL REVENUE)

membership dues of $45 represent approximately 17% of the Associ- ation’s revenues.

The Committee recommended, and the Board subsequently sup- ported, a two-tiered dues increase consisting of $10 in 1995 and $10 in 1996.’ It is important to note that the proposed dues increase, provided it is approved by the 1995 House of Delegates, will not have an impact on the Associa- tion’s revenues until the 1995- 1996 fiscal year. Even with the proposed dues increase, AORN would remain at the low end of the specialty nursing organizations’ dues structures.

IMPLICATIONS FOR MEMBERS To address the recent drop in

membership and arrest this trend, the Center for Member Services used telemarketing in July to remind lapsed members that chap- ters are excellent networking

Figure 2 EXPENSE BREAKDOWN 1993 [PERCENT OF TOTAL REVENUE)

sources for new job opportunities during periods of layoffs and downsizing.

In July and August, Headquar- ters staff members and the Denver AORN chapter members conduct- ed a “phone-a-thon” that targeted individuals whose memberships had lapsed. The AORN Member- ship Committee is conducting site visits this fall to hospitals with low numbers of AORN members or no members to discuss the benefits of belonging to AORN and to recruit new members.

Perhaps we also should consid- er having only one level of mem- bership in the Association. This strategy would permit members whose jobs change to remain active members of AORN.

FISCAL SURVIVAL

and to me. Each of us, in our own way, must work for the Associa-

The Association belongs to you

tion. Tell your colleagues what AORN does for you. Attend AORN educational events. Sup- port the dues increase. Encourage other perioperative nurses to join AORN.

is linked directly to our fiscal sur- vival. The Board of Directors is aware of its fiduciary responsibili- ties and has responded to anticipat- ed changes through the budget review process.

As members of AORN, what will you do to ensure the Associa- tion’s future?

The survival of the Association

LINDA K. GROAH RN, MS, CNOR, CNAA

TREASURER FINANCE AND AUDIT COMMITTEE

NOTE 1. J A Lewis, “Board adopts bud-

get, approves new legislative priori- ties, proposes dues increase,” AORN Journal 60 (August 1994) 176-179.

J i J

AORN JOURNAL