Jeffrey E. Barnett, Psy.D.
Chair, Finance Committee

The Division 42 Finance Committee has oversight responsibilities for the annual budget and, in general, reviews and makes recommendations regarding fiscal policies and procedures to the Treasurer and the Board of Directors. Membership dues are the single largest source of income for the Division. How members’ money is used to further the independent practice of psychology is given serious and thorough consideration by the Finance Committee, the Treasurer, and ultimately, by the Board. The outcome of these decisions is reflected in the annual budget and the Division activities that it supports.

The Finance Committee members are: Jeffrey Barnett, chair, Carol Goodheart, Karen Zager, and Bonnie Markham, Treasurer (ex-officio). The Division’s administrator, Jeannie Beeaff whose institutional knowledge proved invaluable, provided tremendous assistance and support of the budget process. The report that follows provides a summary of the development of the budget for 2002 and includes the actual budget endorsed by a majority vote of the Board at the annual meeting this August. Psychologists in Independent Practice aims to foster the flow of information between its members and their elected representatives and looks forward to your feedback.

A five-year planning retreat was held in March 2001. The full report of the retreat is available on this web site at (click here to view). Significant issues from the retreat that guided us in the budget process include: increasing diversity at all levels of the Division’s governance and in all aspects of the Division’s mission, utilizing all forms of available media to conduct the work of the Division and to communicate with the membership, engaging in activities that tangibly meet the needs of independent practitioners, enabling the Division to be increasingly responsive to the needs of our members, and streamlining the structure and function of the Division’s governance. A few of the specific recommendations were implemented by the Board at the August meeting and are reflected in the 2002 budget. Others will require additional study and some, if adopted, will most likely lead to organizational change.

The budget process proceeded as follows:

1. All Committee and Task Force chairs and officers were asked to respond to detailed questions about their activities in 2001 on behalf of the Division.
2. Once President-Elect, Lenore Walker, made her appointments for the coming year a budget request form was forwarded to each appointed individual and elected officer to obtain their 2002 budget requests and the rationale to support each item.
3. Each budget request was reviewed for consistency with the Division’s goals and the results of the retreat, and the Finance Committee reviewed use of funds by each entity in the past and in the current year.
4. Anticipated income for 2002 was determined by reviewing the Division’s income for the current year, membership patterns, sale of products, and investments.
5. Fixed expenses for conducting the business of the Division as mandated in the bylaws were calculated.
6. Those expenses that are not fixed but that were included in budget requests were analyzed and the remainder of the proposed budget was prepared for submission to the Board.
7. Three motions were prepared for Board approval that will support the implementation of the budget.

Notable in the 2002 budget are the following:

• Increased funding for the Division’s Ethics Code Revision Task Force to continue its important work monitoring and influencing the ongoing revision process of the APA Ethics Code.
• Funding for a diversity initiative that is matched by a grant from APA’s Commission on Ethnic Minority Recruitment, Retention, and Training (CEMRRAT). Increased funding for the Public Education and Public Relations Committee (formerly the Marketing Committee) to expand their efforts to educate the public about the value of choosing an independently practicing psychologist.
• Funding for the study of whether the creation of Interest Groups and the sunsetting of Professional Issues Committees would better serve the needs of the membership in a fiscally prudent manner (See motion 2 that the Board approved. A complete list of finance motions presented at the August Board meeting follows this report.).
• The creation in this budget of a contingency fund; monies that are not specifically assigned to any project, that can be used to finance high priority activities that had not been anticipated at the time the Board voted on the budget. Allocations from the fund require a majority vote of the Board members voting.
• A significant reduction in the funding allocated for the Division’s Mid Year Board Meeting compared to the amount needed to support the retreat. A planning retreat occurs once every five years and the Board must now return to a more streamlined mid year meeting in 2002. Of note is the fact that the Board was able to spend much less than was budgeted for the retreat. These cost savings have made funds available for unanticipated expenditures in 2001, e.g., sending representatives to the APA Ethics Revision Task Force meetings.
• The Board is required to ensure that the Division maintains a reserve account equal to one year’s operating expenses. The anticipated operating expenses for 2002 are $235,200 and the Division’s reserve is currently $275,816. No additional contribution to the Division’s reserve fund is mandated by the By-Laws and therefore was not included in the 2002 budget.

A balanced budget was proposed for consideration based on an anticipated income for 2002 of $235,200, $12,100 less than in 2001. The Board approved the 2002 budget as submitted by the Finance Committee with two exceptions. In order to balance the budget the Finance Committee proposed funding several projects at a reduced level compared to that requested. The Board approved an increase in the funding proposed for the Division’s quarterly bulletin, The Independent Practitioner, by $3,000 to keep its allocation at the 2001 level, and the Board approved $3334, $3,000 more than had been recommended by the Finance Committee, for the work of the Interdivisional Task Force on Managed Care and Health Care Policy.

The Board-approved budget results in a deficit of $5,794. To cover the expected shortfall, the Board voted to withdraw $6,000 from the reserve fund. Doing so is consistent with the Division’s policy to hold one year’s operating expenses in the reserve fund since the reserve fund is currently in excess of that amount, as was indicated above.

Continuing Education

0.

0.

Investment Income

Publications

PRPE (Marketing)

0

2,000.

6,974.

4,000.

2,100.

1,470.

1,500.

Member Contributions

0.

126.

0.

Membership Dues

215,000.

205,707.

207,000.

Bulletin Income

2,000.

600.

1,000.

State Linkages

1,000.

0.

500.

$247,300.

$235,200.

From Division Reserves

6,000.

$241,200.

APA Gov Issues

100.

0.

--

0.

* Uses internet/listserv.

Awards

300.

48.

--

300.

Fellows

300.

0.

300.

300.

Finance

550.

19.

500.

500.

Membership

2,600.

1,380.

9,438.

2,600.

* 1,000 Letters to prospective members
1,600 Response to interest slips.
Provide access to IP online.

Nom & Elections

100.

178.

--

150.

* Large slate this year.

Program

13,350.

0.

17,500.

14,350.

* Need to procure sponsorship again.

Ann Conv. Bd. Meeting

3,200.

0.

--

3,200.

General Board

950.

374.

950.

950.

MY Board Meeting

42,840.

33,833.

--

25,000.

* $23,276. spent in 1999. Board has directed that we go back to that format. Increase reflects possible costs with additional attendees as per President.

Central Office Expense

3,500.

1,979.

3,500.

3,500.

Accounting Fees

2,000.

675.

1,500.

1,500.

Central Office Fees

47,500.

27,708.

47,500.

47,500.

Council Reps

4,500.

3,543.

4,500.

4,500.

Executive Committee

8,000.

660.

9,000.

9,000.

* Realistic expenses including Fall meeting.

Members-at-Large

100.

0.

--

0.

Past President

500.

214.

500.

500.

President Elect

500.

0.

500.

500.

Secretary

250.

19.

250.

250.

Treasurer

1,000.

411.

1,000.

1,000.

President

1,000.

20.

1,000.

1,000.

Appt Letter/Nom Ballot

5,000.

0.

5,000.

5,000.

Bulletin

43,000.

20,503.

43,000.

43,000.

Pub. Board

1,900.

0.

--

500.

Book Series

200.

0.

--

200.

Internet

10,000.

4,320.

12,830.

10,000.

* Cost for posting IP online billed to Bulletin line item.

Estimated Income

$241,200.

Total Fixed Expenses

$175,300.

Funds Available

65,900.

Fed Adv Coordinator

100.

0.

--

50.

Historian

300.

136.

300.

300.

Liaisons

3,000.

2,729.

--

3,000.

PDC

100.

0.

--

0.

* Uses internes/listserv.

Continuing Education

1,000.

213.

–

200.

* We’re required to have a C.E. Committee to remain an APA-Approved C.E. sponsor. Sponsorship fee is $200.

Crisis Intervention

100.

0.

--

Educat. & Training

150.

0.

–

Emerg. Patt. of Pract.

500.

0.

–

Hosp. H.C. Facil.

500.

0.

–

Psychopharm.

100.

0.

500.

Rural

100.

0.

–

Primary Care

100.

0.

--

* Based on the retreat recommendations the E.C. was directed to evaluate the role of Professional Issues Committees and Interest Groups within the Division. See motion #2.

Interest Groups T. F. (E.C.)

200.

* See above.

Memb. Directory

2,500.

0.

2,500.

1,480.

* Start-up funds for print version and web updating costs.

Ethnic Minority Issues

500.

0.

3,230.

3,230.

* Board has already approved this amount- one half of CEMRRAT grant.

State Linkages

7,410.

1,829.

--

500.

MC & Health Care Pol.

1,200.

467.

3,500.

3,334.

PICK 42

4,500.

3,166.

--

5,000.

PRPE (Marketing)

22,450.

13,664.

35,170.

30,000.

Student/New Professional

1,000.

478.

3000.

2,300.

* $1,500. for Student Board member to attend both meetings at same rate of reimbursement as other Board members. $800. for mailings. Use e-mail, website, IP MENTORS listserv, and APAGS newsletter and listserv.

Forensic Psych. T.F.

500.

0.

800.

800.

Business Educ. T.F.

100.

0.

--

0.

Ethics Code Rev. T.F.

1,000.

3,163. +

--

3,600.

* Extra $2,000. being given in 2001. For 2002, $2,600 for two to attend meeting and $1,000. for conference calls.

Guidelines

500.

0.

1,400.

500.

Rescue Health Care Day

500.

0.

--

0.

* One time expense.

T.F. to review P&P and Bylaws

-

--

--

200.

Donation to Multicultural Conf.

1,000.

Contingency Fund

10,000.

* See motion.

$65,694.

65,900.

-65,694.

Surplus:

$ 206.

Motions by the Executive Committee on behalf of the Finance Committee:

1. A contingency fund may be established. Contingency monies are available for the following purposes: new projects that arise during the current budget year, expanding work of currently funded projects, and unanticipated expenses and emergent issues. Allocations from the contingency fund must be approved by a majority vote of the Board members voting.

2. Professional Issues Committees and Interest Groups: The Finance Committee understands that the Executive Committee will be considering the role, structure, and function of Professional Issues Committees (PICs) and Interest Groups (IGs) and will be making a presentation to the Board at the Mid Year meeting. We therefore recommend that the non-APA mandated current PICs and IGs not receive funding in the 2002 budget. The Finance Committee requests that in the deliberations regarding PICs and IGs that the Executive Committee consider the fiscal implications of participation in governance and attendance at the Mid Year Board Meeting.

3. Ordinarily, the Division will only provide budgetary support for face-to-face meetings of any duly appointed working groups of the Division if those meetings occur in conjunction with the annual APA convention. In this case the Division will make space available to the working group at one of the APA convention hotels but will not provide transportation, per diem, or other travel and hotel expenses for the group’s members. The Division will provide budgetary support for face-to-face meetings of duly appointed working groups of the Division as mandated in the Division’s bylaws.