52 AMWA Journal / V36 N1 / 2021 / amwa.org A M W A NEWS AMWA Annual Financial Report, 2019-2020 Julie Phelan, MD, MBA / 2019-2020 AMWA Treasurer It has been a pleasure serving as Treasurer for the American Medical Writers Association (AMWA) over the past year, and I am pleased to provide this financial report for the 2019-2020 fiscal year, which ended June 30, 2020. I begin this report acknowledging that during the last 2 quarters of the fiscal year, the COVID-19 pandemic caused severe disruption to everyday life and a recession. The lead- ership of AMWA quickly put a plan in place to minimize the impact of the pandemic. AMWA staff successfully converted to a remote work environment, and expenses were curtailed. Meetings and travel plans were cancelled, and vacant staff positions were put on hold. The success of the 2019 annual conference in San Diego, popularity of live webinars, increase in membership, and care- ful management of expenses helped to sustain AMWA through this uncertain time. The full financial effects of the COVID-19 pandemic may not be experienced until next year. Financial Performance AMWA’s net income for the 2019-2020 fiscal year was $448,106, with significant investment gains contributing to the results. Revenues Overall, revenues exceeded budget expectations by 6%, largely because of the success of the annual conference. Membership income, annual conference income, and education and cer- tificate program income continue to be AMWA’s major sources of revenue, providing 89% of AMWA’s program revenue. Net investment income of $115,074 accounted for 5% of AMWA’s total revenue (Figure 1). Expenses AMWA invests in programs, products, and services that bring value to members and the medical writing community. Overall, expenses were under budget by 10% for the fiscal year. Total program expenses for the fiscal year were $1,762,592, with 31% of the expenses going to produce the annual confer- ence, 25% of expenses being used to fund member services and benefits, and 17% of expenses funding the education program including the certificate program and online education (Figure 2). Reserves Reserves are the accumulation of funds over time that enable an organization to withstand an emergency or to invest in new mission-related initiates. Unrestricted reserves of 6 to 12 months of annual operating expenses represent a standard target for not-for-profit organizations. With budgeted annual operating expenses of $1,615,950 for the fiscal year from July 1, 2020, to June 30, 2021, the target for AMWA’s reserves ranges Figure 1. Sources of program revenue for the fiscal year that ended June 30, 2020. Figure 2. Sources of major program expenses for the fiscal year that ended June 30, 2020. AMWA Annual Financial Report, 2019-2020 Julie Phelan, MD, MBA / 2019-2020 AMWA Treasurer It has been a pleasure servicing as Treasurer for the American Medical Writers Association (AMWA) over the past year, and I am pleased to provide this financial report for the 2019-2020 fiscal year, which ended June 30, 2020. I begin this report acknowledging that during the last 2 quarters of the fiscal year, the COVID-19 pandemic caused severe disruption to everyday life and a recession. The leadership of AMWA quickly put a plan in place to minimize the impact of the pandemic. AMWA staff successfully converted to a remote work environment, and expenses were curtailed. Meetings and travel plans were cancelled, and vacant staff positions were put on hold. The success of the 2019 annual conference in San Diego, popularity of live webinars, increase in membership, and careful management of expenses helped to sustain AMWA through this uncertain time. The full financial effects of the COVID-19 pandemic may not be experienced until next year. Financial Performance AMWA’s net income for the 2019-2020 fiscal year was $448,106, with significant investment gains contributing to the results. Revenues Overall, revenues exceeded budget expectations by 6%, largely because of the success of the annual conference. Membership income, annual conference income, and education and certificate program income continue to be AMWA’s major sources of revenue, providing 89% of AMWA’s program revenue. Net investment income of $115,074 accounted for 5% of AMWA’s total revenue (Figure 1). Figure 1. Sources of program revenue for the fiscal year that ended June 30, 2020. Membership 35% Annual Conference 38% Education/Certificate Program 16% All Other Revenue 11% Expenses AMWA invests in programs, products, and services that bring value to members and the medical writing community. Overall, expenses were under budget by 10% for the fiscal year. Total program expenses for the fiscal year were $1,762,592, with 31% of the expenses going to produce the annual conference, 25% of expenses being used to fund member services and benefits, and 17% of expenses funding the education program including the certificate program and online education (Figure 2). Figure 2. Sources of major program expenses for the fiscal year that ended June 30, 2020. Reserves Reserves are the accumulation of funds over time that enable an organization to withstand an emergency or to invest in new mission-related initiates. Unrestricted reserves of 6 to 12 months of annual operating expenses represent a standard target for not-for-profit organizations. With budgeted annual operating expenses of $1,615,950 for the fiscal year from July 1, 2020, to June 30, 2021, the target for AMWA’s reserves ranges from $800,000 to $1,600,000. AMWA’s unrestricted short- and long-term investment reserve level of $1,800,000 on June 30, 2020, was within this targeted range. AMWA’s restricted Endowment and McGovern funds totaled $205,200 and $169,000, respectively. Financial Position An organization’s financial position is reflected in its asset and liability holdings. AMWA is well positioned to pay its obligations and plan for the future. Total assets were $3,160,138 as of June 30, 2020, and the organization’s liabilities totaled $561,680. Financial Statement Audit Results Abercrombie and Associates, AMWA’s independent auditors, expressed an unqualified Membership services25% Annual Conference 31%Education Program 17% Journal 7% All Other Programs 20% AMWA Journal / V36 N1 / 2021 / amwa.org 53 A M W A NEWS from $800,000 to $1,600,000. AMWA’s unrestricted short- and long-term investment reserve level of $1,800,000 on June 30, 2020, was within this targeted range. AMWA’s restricted Endowment and McGovern funds totaled $205,200 and $169,000, respectively. Financial Position An organization’s financial position is reflected in its asset and liability holdings. AMWA is well positioned to pay its obli- gations and plan for the future. Total assets were $3,160,138 as of June 30, 2020, and the organization’s liabilities totaled $561,680. Financial Statement Audit Results Abercrombie and Associates, AMWA’s independent audi- tors, expressed an unqualified opinion regarding their audit of the financial statements for the fiscal year that ended June 30, 2020. An unqualified opinion states that the financial statements present fairly, in all material respects, an entity's financial position, results of operations, and cash flows in con- formity with generally accepted accounting principles. AMWA continues to be in a secure financial position as it continues expanding member benefits and resources into the next fiscal year. The full audit report is available to AMWA members upon request. Acknowledgment Thanks to Calibre CPA Group, PLLC, for providing the financial data and the members of the 2019-2020 Budget and Finance Committee for their review of reports and budgets: June Baldwin, Adriana Caballero, Alice Pappas, Leena Patel, Whitney Smalley-Freed and Christine Wogan, Ann Winter-Vann (2019- 20 AMWA President), Gail V. Flores (AMWA President-Elect), and Susan Krug (AMWA Executive Director). Author contact: Julie@biomedisysinc.com Organizational Donors ($800) Gail V. Flores PerfectIt Individual Donors ($80+) Lori L. Alexander Saleh Alqahtani Jack Aslanian Brian Bass Bookworm Editing Services LLC Nicole Cooper Tracy Craig Elise Eller Kathryn Emily R. Michelle Sauer Gehring Heather Gorby Douglas Haneline Jessica Kiser Laurie Kozbelt Susan Krug Cynthia Kryder Sheryl Lallemand Eleanor Mayfield Donna Miceli Jennifer Minarcik Marcello Morgan Margaret Norris Julie Phelan John Redue Jessica Reimer Stephanie Vargas Ann Winter-Vann 80th Anniversary Donors 80th Anniversary Donors generously support AMWA’s 80 years educating medical communicators. Tax-deductible donations help AMWA fulfill its mission to promote excellence in medical communication and provide education and resources in support of that goal. � To make a donation, please visit www.amwa.org/donations mailto:Julie@biomedisysinc.com http://www.amwa.org/donations