It is my pleasure to provide this mid-year report of the financial status of ARPAS. This report reflects financial information which was available on May 31, 2014. 

ARPAS is continuing on a very sound, stable financial course with all major categories of revenues and expenses to date being in line with what was budgeted for 2014. Most notably, revenues from membership dues is slightly over budget, while corporate sponsorships is under budget. The result of combined effect of these is that overall Membership Services (about 57 percent of our budgeted revenue) is right at what was projected for the year. The improved revenue picture for membership dues reflects a $10 per member increase in dues instituted for 2014. The other major revenue source for ARPAS, the Professional Animal Scientist journal, has revenues to-date which are outpacing its expenses which gives reasonable expectation that PAS will finish 2014 with revenues in balance with expenses. Lastly, at the end of the first 5 months of the fiscal year (41.7% of the year) our total expenses are at 32 percent of that budgeted for the year. These indicators all point to a balanced fiscal year for ARPAS.

Another important aspect of the financial picture for ARPAS is the net asset value of our various reserves. Reserves for ARPAS and the ARPAS Foundation are invested in accounts with Morgan Stanley, which continue to be managed with approximately 75 percent of assets in fixed income and 25 percent of assets in equity investments. Dividends and interest from fixed income holdings provide about $13,000 of income per year for the operating budget. Unrealized investment gains stood at $ 9,410 on May 31st but this gain is certainly subject to market volatility. Past years’ success provides us with a high level of confidence that ARPAS assets are secured in appropriate investment instruments. The table below shows the growth of reserves over the past five years. During this time period much of the revenue over expenses for ARPAS in any given year was diverted to the ARPAS Foundation investment account, thus the growth in asset value for the Foundation has been steeper than growth of asset value in the ARPAS investment account. ARPAS also maintains a savings account with FASS for more our more immediate needs for additional funds; the balance in the savings account routinely runs between $70,000 and $90,000.



In summary, ARPAS continues on a very sound financial course. The only concern at this time is what appears to be a loss of corporate sponsorship which could be becoming a long-term trend. It is suggested that the Governing Council discuss this situation.

Respectfully submitted,

Carl W. Hunt, Treasurer