COA Annual Financial Report 2003

Brendan D. Lewis, M.D., FRCSC
COA Treasurer
Cornerbrook, NL

At the recent Annual Meeting of the Canadian Orthopaedic Association (COA), the audited financial statements for the year ending February 28, 2004 were presented and approved by the Board of Directors.

Revenue for the year was slightly ahead of budget due to better than expected past dues collections and to an Annual Meeting deficit from last year that was smaller than expected. The deficit for the year of $21K is a substantial improvement over our original estimates for 2004, given the unprecedented challenges of 2003.

As noted in the 2003 financial report, the repercussions of the Toronto Annual Meeting cancellation affected both the 2003 and 2004 statements. Our statement for 2003 showed an extraordinary gain of $56K which was the net result of members and industry donating their fees to the Association for the cancelled Meeting. The Association enjoyed an excellent Annual Meeting in October in Winnipeg. The Winnipeg Meeting did not have the opportunity to include exhibitors, which had a dramatic negative impact on revenues for this Meeting. The net result for the Winnipeg Meeting was a deficit of $49K. Considering the gain for the Toronto Meeting that was recognized in 2003 and the deficit for Winnipeg, there was actually a small gain of $7K once all is taken into account for the revenues and expenses for both Toronto and Winnipeg in 2003.

In spite of the financial challenges stemming from the Annual Meeting in 2003, the COA Board continued to invest in initiatives that have an impact on our members while controlling overhead costs. In 2003 there were some significant new projects that impacted expenses. The Orthopaedic Self Assessment Exam programme had a net cost of $13K and our part-time contract for data acquisition to support the National Standards Committee cost $30K. Both of these expenses are included under Programme costs in the summary that follows. Additional legal and consultant costs were incurred in 2003 to help the Board manage the Meeting cancellation in Toronto (these costs are included under administrative costs).

An aggressive campaign to collect past due membership fees was successful in reversing our bad debt exposure and had a positive impact on revenues of approximately $25K. Deposits for future Annual Meetings consumed considerable cash in 2003 as venues were secured in Montreal, Halifax, Quebec City and Whistler. This cash was generated by withdrawals from the Association’s long-term investment funds.

A summary of the 2003 statements follows. The complete audited statements are available to any COA member upon request by contacting the COA Office.

Balance Sheet as of February 28, 2004

(all amounts in thousands)

Income Statement for the year ended February 28, 2004

(all amounts in thousands)