Council Policy Manual: R. Financial Affairs

The APA Policy Manual is a collection of policy actions taken by the APA Council of Representatives. This edition includes actions taken after 1960 and up to but not including August 2001. The texts included in the Manual are the texts of the actual motions passed by Council.

• I. Consumer Price Index Dues Adjustment
  
• II. Directorate Budget Monitoring
  
• III. Investment Policy
  
• IV. New Worth Allocation
  
• V. Responsible Spending
  
• VI. Staff Compensation

I. CONSUMER PRICE INDEX DUES ADJUSTMENTS

1. August 2000

Council voted to approve 1) instituting the practice of increasing the APA dues annually by an amount linked to the consumer price index for all urban consumers (CPI-U); and 2) a $4 dues increase from $215 to $219 for the 2001 dues year.

II. DIRECTORATE BUDGET MONITORING

1. February 2001

Council voted to approve the following motion:

That each Executive Director be directed to update its respective board on the status of the Directorate budget as well as the overall condition of the APA budget on a continuing basis to foster ongoing dialogue. To facilitate this process, each group shall annually have a standing item on its agenda to review and discuss priorities, direction and values of its respective area. It is the feeling of council that this ongoing dialogue will enhance unified progress toward agreed upon goals.

III. INVESTMENT POLICY

1. 1978

The American Psychological Association affirms its responsibilities in its role as an investor in the American corporations to act in a manner consistent with its goals of promoting human welfare. Recognizing the APA investment policies should be aimed at maximizing financial benefits to the Association, the APA Council of Representatives considers it a responsibility of the Association to see that such policies are consistent with the social and moral concerns of the individual psychologists it represents. Therefore, be it resolved that the American Psychological Association, as part owner of the American corporations in this country and abroad, will encourage these corporations to act humanely and in a manner which is beneficial to society.

To accomplish these aims, APA should analyze corporate resolutions in order to vote proxies in a manner that will ameliorate social conditions or reduce past social harms caused by corporate actions. In extreme cases, APA may elect to divest itself of holdings in a corporation when it appears that the corporation is not amenable to influence by its stockholders.

IV. NET WORTH ALLOCATION

1. 1978

The goal for attainment of net worth as stated in Association Rule 210-3 should be reaffirmed; namely, that the Association strives to maintain a net worth equal to at least one year’s operating budget subject to the consideration of pressing priorities that may arise.

Consistent with accounting practices, conventional wisdom and comparable financial data from other organizations, the Association should not consider any portion of theoretical building equity toward attainment of the net worth goal mentioned in item 1 above. [Note: This action is recommended since consideration of building equity in the attainment of our net worth goal makes no additional funds available for operations.]

Currently, rather than specifically set aside funds outside the normal budget process for development of programs deemed to be of high priority to the membership, the Association enthusiastically supports consideration of proposals for new revenue generating ideas. [Such proposals or new revenue generating ideas should be thoroughly detailed including all direct costs, indirect costs, and staff costs. Such proposals reviewed by the Board of Directors and approved by the Council of Representatives, will be funded out of ongoing revenues or out of the Association's net worth, as necessary, assuming that full consideration is also given to the impact of such funding on progress towards the Association's net worth goal mentioned in item 1 above.]

The specific financial forecast for 2001 - 2003 is as follows:

1. Strive to attain a net worth goal equal to at least one year's operating budget consistent with Association Rule 210-3;
2. Include all net cash flow from building operations in the operating budget as a regular source of revenue (currently, the average net cash flow from building operations is estimated at $1,000,000 per year during this forecast period);
3. Include funding in the operating budget for the Public Education Campaign through the forecast period (2001-2003);
4. Restrict capital expenditures to no more than $4,500,000 over the forecast period;
5. Continue to reinvest net gains/losses from our long-term portfolio activity (estimated at $2,700,000 over the forecast period);
6. Continue to subsidize the operating budget by all interest and dividends generated from our long-term portfolio activity (estimated at $2,000,000 over the forecast period); and,
7. Continue to treat the advance to Square 677 as a loan rather than as an additional capital contribution and limit the loan principal to no more than $10 million dollars.

Each year based on actual results and an analysis of our net worth, future financial forecasts will be adjusted accordingly.

Once the net worth goals are attained, any number of future actions can be taken including the long-term stabilization of dues; the long-term availability of funds for the development of programs deemed to be of high priority to the membership; further apportionment of building and investment proceeds toward operational expenses, etc.

V. RESPONSIBLE SPENDING

1. August 1994

Council voted to implement the recommendations contained in the Finance Committee Report to Council on “Responsible Spending” dated June 1994. The recommendations will be implemented on a phased schedule as appropriate. [Appendix R - V.1]

VI. STAFF COMPENSATION

1. August 1992

That the fiduciary responsibilities of the Council of Representatives, for oversight of Central Office compensation policies as currently met, in accordance with Article IV, Section 1 of the APA Bylaws, by the Board of Directors serving as the Council’s administrative agent, be further supplemented by an annual review of staff compensation by the Finance Committee. In addition, compensation policies of the Association shall be provided to the Council on a regular basis.

Council Policy Manual: Table of Contents | Introduction | A. Elections | B. Awards | C. Membership | D. Human Resources | E. Ethics | F. Board of Directors | G. Divisions and State and Provincial Associations | H. Organization of APA | I. Publications and Communcations | J. Convention Affairs | K. Educational Affairs | L. Professional Affairs | M. Scientific Affairs | N. Public Interest - Part 1 | N. Public Interest - Part 2 | N. Public Interest - Part 3 | N. Public Interest - Part 4 | N. Public Interest - Part 5 | O. Ethnic Minority Affairs | P. International Affairs | Q. Central Office | R. Financial Affairs