Quickening_Winter17_FINAL-2-28-17

Financial Update
Careful Management Scores Progress
In 2014 and 2015, ACNM carried budget deficits of nearly
$1M. Last year, in its December 2015 meeting, the Board of
Directors approved a 2016 budget that pledged to cut deficit
spending in half. Tate & Tryon, our consulting firm, indicated
that through careful management and tough decision-making,
ACNM could achieve this goal. As you’ll see, we did it!
At that meeting, the Board also committed to working toward
a balanced budget for 2017. Recently, at its December 2016
meeting, the Board considered and approved a balanced budget
for 2017.
As anticipated, our year-end 2016 projections show an excess
of expenses over revenue of just under $500,000. (Figure 1)
Throughout 2016, ACNM has endeavored to find ways to reduce
spending. Between December 31, 2015 and December 31,
2016, we have eliminated approximately $800,000 in expenses.
(Figure 2)
In addition to cutting expenses significantly, our annual meeting
netted a small surplus and our Department of Global Outreach
met its budgeted revenues for the year. The deficit we will realize
at the end of 2016—despite these gains and our dedicated
efforts to decrease spending—is partially due to decreases in
revenue from membership dues, which are less than budgeted.
In 2017, membership recruitment and retention will be a
primary area of focus for ACNM.
Budget Takeaways
We have taken the necessary steps to decrease spending and
begin to implement strategies that will increase revenue in the
future. Our improvements have materialized in the following
ways:
1. The 500K budget deficit for 2016 is as expected and
budgeted, and it represents a 50% decrease in deficit
spending from the past 2 years.
2. We did not draw on reserves in August 2016 as originally
predicted, but instead took a small ($100K) draw in early
December.
3. The 2017 ACNM budget is a balanced budget.
4. We will continue to examine and implement strategies
that will strengthen our financial position while meeting
the needs of our members.
By Alison Brooks, ACNM Director of Finance,
and Joan Slager, CNM, DNP, CPC, FACNM, ACNM Treasurer
FIGURE 1
FIGURE 2
10 American College of Nurse-Midwives