14 minute read
TDA Governance
Financial Report of the Texas Dental Association Covid, A Hybrid Meeting, and a Dues Increase
Usually with this annual article we highlight the end-of-year differences between our budget versus our actuals. This year our auditors were delayed due to unforeseen issues so there are no official audited numbers to discuss with the members prior to the TDA House of Delegates meeting in May. Yet we will discuss some of the “unofficial” numbers from 2021 to explain why the TDA will have a small loss for the year, plus detail why there will be a request for a $20 dues increase in 2023.
To reflect on 2021, the TDA, along with just about every other business, experienced several obstacles that have impacted our financial outcome. Our biggest two revenue sources, membership dues (7a) and annual session (1 and 8), both took negative hits in 2021. TDA also ramped up in-person meetings and this caused travel expenses to increase compared to nearly a full year of Zoom meetings in 2020.
The annual session meeting was one of the very first dental meetings in the country to return to an in-person meeting. TDA was also the second meeting to be hosted at San Antonio’s Henry B. Gonzalez Convention Center in 2021. Even though the TDA did not produce as much revenue as was budgeted (budget = $348,351, actual = $35,400), it still gave our membership the expected valued continuing education. Dr. Hutto and the Council on Annual Meeting and Continuing Education Programs (CAMCEP) persevered through many hurdles (Covid restrictions, hotel issues, IT upgrades to offer virtual access, speaker requirements, etc…), all to create an environment for quality education. It was not a normal year and they deserve significant praise for being able to get a meeting together, much less a hybrid meeting. So, Thank You Red Coats for helping to meet our CE needs.
As for membership, TDA ended 2021 with 8,857 members, with 7,335 of them being active licensed dentists. We continue down the road to recovery from a drop in membership and the corresponding dues revenue (line 7a) due to COVID and other factors. The actual dues revenue received in 2021 was $2,468,330 versus
Dr Cody Graves
Secretary-Treasurer, TDA
• That’s a real old picture up there. I look young! • The proposed 2023 budget is $5,769,988. • Dues are suggested to increase for the first time since 2015 by $20. • The budget is balanced in accordance with TDA
Bylaws without using methods of finance outside of expected revenues. • The riders, allowing limited revisions to the budget, are included in this budget. The
TDA Smiles Foundation has been eliminated this year due to financial constraints. • The 2023 budget is a basic operational budget. Any strategic plan, membership initiatives, or additional meetings not currently funded will need to be funded from our reserves, subject to Board approval.
a budget of $2,598,712 (a shortfall of -$130,382 and once again not audited numbers).
Wrapping up 2021 does not consist of all bad news. TDA received forgiveness on a PPP loan to cover personnel salary of $255,100 and our expenses (under 80% of budget) were well controlled. Also, the financial markets allowed our long-term investments, (life to date) as of 12/31/2021, to increase close to a million dollars of unrealized gain.
Ultimately, once the audit is completed, we can determine the exact numbers, but the TDA is estimated to lose about -$100,000 to -$130,000 in 2021.
That brings us to the 2023 budget. I’ll treat you readers like I do the board. Start on the back page of the budget, which is the Building (6 and 13). TDA has the entire first floor vacant and one suite on the second but the remainder of the building is leased out. We are forecasting (if everything stays the same) a small surplus revenue from our building in 2023.
Next page up is Communications (3-5, 10-12), which is Dr Dan Jones’ arena. An item to note on this page is the breakdown of TDA’s three outsourced consultants in each of the area’s expenses (10a, 11a, 12a). The addition of Sales Commissions (10e, 11d, 12b) from TDA’s soonto-be new outsourced sales and marketing company (MCI Sales). Advertising continues to be the biggest driver of revenue and $17 dollars from every dues paying member goes to the Texas Dental Journal, plus $5 goes to the TDA Today.
Pages 4 and 5 are the Annual Session and Continuing Education (1, 2, 8, 9) sections. The budget estimates about a 15% reduction from 2019 actuals for clinics for continuing education (1b) and registration (1g) revenue. Expenses assume increases in audio-visual costs (8a). The consultants line item (8h) includes outsourced Strategic Association Management’s services and MCI Sales. The CE programs consist of revenues and expense estimated for the dental concierge app subscriptions, 18 online courses, 2 regional meetings, and a dentist-only conference. These items are only estimated due to no historic trends.
Getting closer to the front page, page 3 is the BOD, Councils, Committees, ADA, HOD, and other Expenses (17-22). With such a jump in expenses this year to try and kick start our membership growth, most of these line items have been reduced to help control expenses. Next year will be a legislative year for Texas (beginning January 10, 2023), the ADA will be in Orlando, and we should begin to have regular Texas HOD meetings. Page 2 is Central Office Departments (16) in which a new meetings director employee is scheduled to be added. Health insurance (16d) took a big 12% increase in 2022 and we estimate another 8% increase in 2023. All Other Expenses (aa-gg) have been reduced.
Finally, to the first page. Most of these line items have been covered except for MBL partnership revenue (7f) which is budgeted to stay the same. Expenses were reduced for Capital Improvements (14), Non-budget Contingency (15) and the TDA Smiles Foundation (23) due to budget constraints.
With these adjustments to both expense increases and revenue decreases, the TDA Board of Directors is recommending a $20 dues increase. Once again, TDA’s dues have been constant for 7 years, so please allow a small increase to cover expenses to keep providing our membership value.
Once again, I want to thank the Budget, Assets, and Finance Committee for recommending a budget that remains operational, yet efficient, and the TDA Board of Directors for approving this budget for the TDA House of Delegates to discuss. It is my honor to serve as the Texas Dental Association’s Secretary/Treasurer. Please feel free to ask any question. If I can answer it, I will. If I do not know the answer, I’ll find it.
Revenues
ANNUAL SESSION
PUBLICATIONS/ WEBSITE
BUILDING
OPERATIONS
Expenses
ANNUAL SESSION
PUBLICATIONS/ WEBSITE
BUILDING
CAPITAL IMPROVEMENTS
CONTINGENCY
CENTRAL OFFICE
BOARD OF DIRECTORS
COMMITTEES
COUNCILS
ADA/NATIONAL ORGANIZATIONS HOUSE OF DELEGATES
OTHER EXPENSE
CONTRIBUTIONS
2023 Proposed Budget Texas Dental Association
PLEASE NOTE: For individual line-item explanations, please visit tinyurl.com/budget-explanation
2021 2022 2023 Budget Budget Proposed
1. Annual Session 1,418,383 583,910 1,329,968
2. Continuing Education Programs
3. Journal 4. TDA Today 5. TDA Website
Total Publications/Website
6. Building
7. Operating a. Dues b. Investment Earnings-Sweep c. Miscellaneous d. Affiliates Administration e. MBL Partnership
Total Operating
TOTAL REVENUES
43,000 150,000 664,699
333,444 326,151 358,806 43,115 40,970 38,384 37,000 37,000 45,000
413,559 404,121 442,191
351,531 313,562 304,713
2,598,712 2,549,468 2,571,971 50,000 40,000 10,000 35,000 168,640 75,000 92,740 96,908 96,446 290,000 275,000 275,000
3,066,452 3,130,016 3,028,417
5,292,925 4,581,609 5,769,988
8. Annual Session
9. Continuing Education Programs
10. Journal 11. TDA Today 12. TDA Website
Total Publications/Website
13. Building 14. Capital Improvements
15. Non Budgeted Contingency 16. Central Office Departments 17. Board of Directors
18. Committees
19. Councils
20. ADA /National Organizations
21. House of Delegates
22. Other expense 23. TDA Smiles Foundation
TOTAL EXPENSES
REVENUE OVER EXPENSE
24. Method of Finance Adjustment 25. TDA Financial Services, Inc. Cash Dividend
ADJUSTED REVENUE OVER EXPENSE
1,070,032 76,083 1,043,700
5,500 30,000 354,110
230,050 230,050 305,220 110,500 110,500 98,750 44,800 55,800 53,750
385,350 396,350 457,720
315,603 325,141 295,235
10,000 10,000 0
19,000 29,000 5,000
2,701,911 2,866,450 2,971,172 205,985 204,665 181,895
21,045 21,220 18,070
203,594 164,895 164,230
186,205 165,815 135,180
65,700 45,350 80,675
53,000 196,640 38,000
50,000 50,000 25,000
5,292,925 4,581,609 5,769,988
0 0 0
0 0 0
Central Office Departments
PERSONNEL
2023 Proposed Budget Texas Dental Association
2021 2022 2023 Budget Budget Proposed
16. Central Office Departments
Personnel: a. Regular Salaries b. Payroll Taxes c. Health Insurance d. Retirement
Total Personnel
1,536,820 1,655,619 1,753,146 117,567 125,395 133,662 167,567 173,634 206,053 134,079 157,868 163,400
1,956,033 2,112,516 2,256,261
OFFICE OPERATIONS
Office Operations: e. Insurance—Directors/Officers f. Leases—Equipment g. Maintenance h. Postage and Couriers i. Printing j. Supplies—Office k. Taxes—State and Local l. Information Technology
Total Office Operations
SERVICES
Services: m. Accounting Services—Payroll n. Accounting and Auditing Services o. Bank Charges p. Consultants q. Legal Services r. Lobbying s. Gifts and Memorials
Total Services
50,477 59,733 57,681 39,651 42,447 34,526 14,038 15,800 16,550 22,802 10,975 7,975 16,200 12,300 12,300 14,150 13,112 8,112 4,039 3,539 4,500 13,500 10,728 10,672
174,857 168,634 152,316
4,800 4,800 4,800 32,412 35,000 36,450 17,500 19,000 19,000 30,396 31,200 31,200 154,000 159,000 159,000 201,500 190,500 201,500 1,000 1,950 1,450
441,608 441,450 453,400
OTHER EXPENSES
Other Expenses: t. Dues Processing 85,000 100,000 75,000 u. Education and Organizational Development 11,250 10,000 7,500 v. Meetings 2,600 4,000 2,000 w. Professional Dues & Memberships 3,150 3,430 2,800 x. Subscriptions 2,949 6,800 5,850 y. Recruiting 1,000 1,000 500 z. Travel 23,465 18,620 15,545
Total Other Expenses 129,414 143,850 109,195
Total Central Office 2,701,911 2,866,450 2,971,172
BOARD OF DIRECTORS
COMMITTEES
COUNCILS
ADA/NATIONAL ORGANIZATIONS
HOUSE OF DELEGATES
OTHER EXPENSE
2023 Proposed Budget Texas Dental Association
2021 2022 2023 Budget Budget Proposed
17. Board of Directors:
a. President b. Presiden—Stipend c. President Elect d. President Elect—Stipend e. Past President f. Secretary Treasurer g. Secretary Treasurer—Stipend h. Editor i. Editor—Stipend j. Vice Presidents k. Senior Directors l. Directors m. Other Officers n. Board Meetings
Total Board of Directors 18. Committees:
a. Audit b. Awards c. Budget, Assets and Finance d. Community Fluoride e. Strategic Affairs
Total Committees
27,000 28,705 20,985 36,000 36,000 32,400 8,830 8,520 7,070 8,400 8,400 7,200 5,400 5,230 4,830 5,400 5,230 4,830 8,400 8,400 7,200 4,000 3,830 3,430 8,400 8,400 7,200 21,860 21,280 19,480 21,860 21,280 19,480 21,860 21,280 19,480 9,050 8,460 7,910 19,525 19,650 20,400
205,985 204,665 181,895
1,540 1,615 0 17,095 17,095 17,220 0 0 0 1,300 1,300 600 1,110 1,210 250
21,045 21,220 18,070
19. Councils:
a. Annual Meeting and CE Programs b. Legislative and Regulatory Affairs
10,350 10,850 7,970 100,699 58,560 87,995 c. DENPAC 38,575 40,345 32,425 d. Dental Licensing, Standards and Education 9,680 10,155 7,475 e. Ethics and Judicial Affairs 2,080 2,180 1,980 f. Governance 7,660 7,910 2,760 g. Membership, New Dentists and Students 19,000 18,695 16,525 h. Peer Review 2,550 2,600 1,500 i. Professions and Trends 5,000 5,250 3,340 j. Public Health and Access to Care 8,000 8,350 2,260 k. TOHPAC 0 0 0
Total Councils 203,594 164,895 164,230 20. ADA /National Organizations:
a. ADA Delegates 150,405 120,015 135,180 b. ADA 15th Trustee Headquarters 0 10,000 0 c. ADA Texas Reception 35,800 35,800 0
Total ADA /National 186,205 165,815 135,180 21. House of Delegates:
a. HOD 50 Year and Life Luncheon 5,700 7,700 7,700 b. HOD Headquarters 58,000 35,650 70,975 c. HOD Past President’s Breakfast 2,000 2,000 2,000
Total House of Delegates 65,700 45,350 80,675 22. Other Expense
a. Federal Income Tax 35,000 35,000 30,000 b. TDA Advocacy Academy 0 0 0 c. TDA Conferences 10,000 10,000 0 d. Alliance/TDAA Stipends 8,000 8,000 8,000 e. Building Loan Interest 0 143,640 0
Total Other Expense 53,000 196,640 38,000
Annual Session
ANNUAL SESSION REVENUE
2023 Proposed Budget Texas Dental Association
2021 2022 2023 Budget Budget Proposed
1. Annual Session Revenue
a. Advertising b. Clinics for Continuing Education c. Exhibits d. Miscellaneous e. Other Groups f. Registration g. Sponsorships
Total Annual Session Revenue
4,000 0 8,000 812,383 0 690,525 415,000 0 450,000 0 583,910 0 17,000 0 17,000 95,000 0 74,443 75,000 0 90,000
1,418,383 583,910 1,329,968
ANNUAL SESSION EXPENSE 8. Annual Session Expense
a. Audio—Visual b. Bank Charges c. Clinician Honorariums d. Clinician Support e. Consultants f. Exhibits g. Hospitality Suite h. Insurance i. Miscellaneous j. Onsite Program k. Other Groups l. Postage m. President’s Reception n. Promotion o. Registration p. Shuttle Services q. Stipends r. Supplies s. Information Technology t. TDA Party u. Travel v. VIP Reception
Total Annual Session Expense
Annual Session Net Revenue (Loss)
164,337 0 150,000 30,000 0 25,000 200,000 0 150,000 100,000 0 90,000 100,000 50,000 228,250 160,000 0 150,000 20,000 0 15,000 4,000 0 10,425 1,750 0 1,750 6,000 0 0 16,000 0 16,000 6,000 0 6,000 0 0 0 30,000 0 20,000 137,000 0 125,000 10,000 0 10,000 15,000 15,000 15,000 200 0 200 0 0 0 30,000 0 0 24,745 11,083 31,075 15,000 0 0
1,070,032 76,083 1,043,700
348,351 507,827 286,268
Continuing Education
REVENUE
2023 Proposed Budget Texas Dental Association
2021 2022 2023 Budget Budget Proposed
2. Continuing Education Revenue
a. Advertising b. Clinics for Continuing Education c. Exhibits d. Miscellaneous e. Subscriptions f. Registration g. Sponsorships
Total Continuing Education Revenue
0 0 6,000 43,000 150,000 213,738 0 0 11,500 0 0 9,335 0 0 40,446 0 0 332,640 0 0 51,040
43,000 150,000 664,699
EXPENSE 9. Continuing Education Expense
a. Audio—Visual b. Bank Charges c. Clinician Honorariums d. Clinician Support e. Consultants f. Exhibits g. F&B h. Insurance i. Miscellaneous j. Postage k. Promotion l. Registration m. Stipends n. Supplies o. Travel p. Information Technology
Total Continuing Education Expense 5,500 30,000 354,110
Continuing Education Net Revenue (Loss) 37,500 120,000 310,589
0 0 30,000 0 0 6,000 5,500 30,000 85,000 0 0 12,000 0 0 102,806 0 0 1,000 0 0 85,750 0 0 0 0 0 900 0 0 100 0 0 10,000 0 0 2,000 0 0 0 0 0 1,000 0 0 5,350 0 0 12,204
Publications/ Website
JOURNAL REVENUE
JOURNAL EXPENSE
2023 Proposed Budget Texas Dental Association
3. TDA Journal Revenue
a. Advertising b. Single Issue Purchases c. Subscriptions d. Miscellaneous
Total TDA Journal Revenue
10. TDA Journal Expense
a. Consultants b. Meetings c. Postage and Couriers d. Printing and Production e. Sales Commissions f. Supplies g. Travel
Total TDA Journal Expense 2021 2022 2023 Budget Budget Proposed
222,248 222,248 265,600 255 255 100 110,941 103,648 93,106 0 0 0
333,444 326,151 358,806
49,500 49,500 49,500 200 200 200 50,000 50,000 45,000 129,950 129,950 140,500 0 0 69,720 200 200 100 200 200 200
230,050 230,050 305,220
TDA TODAY REVENUE
TDA TODAY EXPENSE 4. TDA Today Revenue
a. Advertising b. Subscriptions—Membership Dues
Total TDA Today Revenue
11. TDA Today Expense
a. Consultants b. Postage c. Printing and Production d. Sales Commissions
Total TDA Today Expense
WEBSITE REVENUE
WEBSITE EXPENSE 5. TDA Website Revenue
a. Advertising b. TDA Affiliates Advertising
Total TDA Website Revenue
12. TDA Website Expense
a. Consultants b. Sales Commissions c. Software and Software Support d. Subscriptions—Publications e. Website Hosting
Total TDA Website Expense
3-5. Total Publication/Web Revenues 10-12. Total Publication/Web Expense
Communications Net Revenue (Loss)
11,000 11,000 11,000 32,115 29,970 27,384
43,115 40,970 38,384
49,500 49,500 35,000 31,000 31,000 31,000 30,000 30,000 30,000 0 0 2,750
110,500 110,500 98,750
37,000 37,000 45,000 0 0 0
37,000 37,000 45,000
39,000 50,000 42,000 0 0 11,250 300 300 0 500 500 100 5,000 5,000 400
44,800 55,800 53,750
413,559 404,121 442,191 385,350 396,350 457,720
28,209 7,771 (15,529)
Buildings
BUILDING REVENUE
2023 Proposed Budget Texas Dental Association
2021 2022 2023 Budget Budget Proposed
6. TDA Building Revenue a. Lease Income
Total TDA Building Revenue
351,531 313,562 304,713
351,531 313,562 304,713
BUILDING EXPENSE 13. TDA Building Expense
a. Building Lease Broker Fees b. Building Management Fees c. Insurance—Operating d. Repairs and Maintenance—Equipment e. Service Contracts f. Supplies g. Taxes—State & Local h. Utilities
Total TDA Building Expense
BUILDING MAINTENANCE Building Net Revenue (Loss)
9,000 9,000 0 22,703 23,000 28,000 28,000 34,141 23,235 40,000 40,000 30,000 85,000 85,000 90,000 5,000 5,000 2,000 80,000 82,500 85,000 45,900 46,500 37,000
315,603 325,141 295,235
35,928 (11,580) 9,478
RIDERS
1. General Revision Authority. The Board of Directors is authorized to revise and amend the 2023 budget, in the aggregate or any single line item, during the time period August 1, 2022 and November 30, 2022, with such authority subject to the following: a. The Board must, upon review and recommendation by the Secretary-Treasurer, certify a new revenue estimate. Such estimate shall be based on reasonable projections using know factors affecting dues and non-dues revenues. b. The originally budgeted expenditures for the House of Delegates shall not be reduced unless the Speaker recommends to the Board in writing or verbally as reflected in the minutes of the Board, that the originally budgeted expenditures be reduced. c. Overall expenses may not, in aggregate, be increased by an amount greater than 10% of the original amount. Any expected net gain net of 10% adjustment in expenses will be allocated to non-budgeted contingency items. d. The revised budget shall be published in the Texas Dental Journal and delivered electronically to the Speaker for distribution to the House of Delegates.
2. Report of Expenditures and Methods of Finance. Any amounts expended pursuant to a duly adopted rider shall be reported in a manner that is consistent with reporting for other expenditures, and shall be clearly identified with the enabling rider and method of finance.
