As I write this article, many of us are fresh off of the very successful 2023 Annual Meeting in Chicago. It was a joy to see so many of our colleagues and friends again from around the country and from around the world. So many aspects of an in-person meeting accentuate the value of those relationships. Thanks to the efforts of many, including AUA Secretary John Denstedt, AUA Secretary-elect David Penson, and Office of Education Chair Jay Raman, the educational content was inspiring and state-of-the-art across the breadth of clinical urology and translational research, as well as pertinent to the management of our practices.

The AUA Treasurer, along with the CEO and CFO, is responsible for safeguarding the assets of the AUA and the Urology Care Foundation (UCF). The duties of the office of Treasurer include the regular reporting of financial information and investment performance within allocation guidelines provided by the AUA investment policy statement. The investment policy statement is annually reviewed and updated by the AUA board based on recommendations from the AUA Finance Committee. In addition, it is the duty of the Treasurer to ensure the organization’s financial and regulatory compliance with nonprofit requirements.

In line with the responsibilities of the Treasurer, financial presentations were made to the AUA Board of Directors, the UCF Board of Directors, and to the general membership at the 2023 annual business meeting. The following Treasurer’s Report will strive to further communicate to the membership on material AUA financial matters, including current status and outlook.

The AUA is an organization comprised of 4 tax-exempt entities under which the various AUA programs reside. The 4 entities include AUAER (AUA Education and Research, Inc), AUA, Inc, AUAPAC (AUA, Inc Political Action Committee), and UCF, Inc. Collectively, these entities are referred to as the “AUA” (Figure 1).

Figure 1. The 4 entities that comprise the AUA.

The Treasurer’s Report to the AUA boards and membership emphasized the results of the recent 2022 fiscal year audit performed by RSM inclusive of all AUA entities. A favorable unmodified opinion was provided with no debt covenant compliance issues. Internal controls were tested with no deficiencies noted. Sufficient liquidity of financial assets was noted as well.

Audited revenue from the Income Statement was $41,718,667 with expenses of $40,007,278 accounting for an operating surplus of $1,711,389 before net unrealized investment losses and interest expense (Figure 2). The Annual Meeting, Membership, and Publications programs along with UCF provide positive operating margins to help support and subsidize mission-driven priorities in Research, Advocacy and Science & Quality. Budget requirements, established by the board of directors, include performance targets as well as deficit and expense caps for AUA programs and the UCF. All AUA programs and UCF complied with budget requirements for fiscal year 2022.

Figure 2. 2022 AUA combined operating revenue and expenses.

Although the audited combined financials reinforce a strong cash and liquidity position for the AUA, the challenging investment markets of 2022 impacted the valuation of the organization’s long-term investments in the form of overall unrealized losses on the year. A commitment to prudent management and sound policies put in place decades ago ensures that the operations of AUA and UCF are not negatively impacted during periods of increased volatility. Despite a market downturn in 2022, UCF anticipates providing over $1.2 million in research grant funding to more than 40 early-career investigators, as well as 9 humanitarian grants and awards during 2023.

The AUA is a membership society that remains strong financially secondary to in-place and strategic asset management policies. Throughout short-term challenges such as those experienced during the past several years, the organization maintains a long-term financial outlook while maintaining the agility to make the tactical adjustments necessary to adapt to the circumstances that affect all of us. Throughout the annual cycle, financial results and opportunities are diligently analyzed, benchmarked, and carefully considered by various committees, leadership, and management.

The annual 2024 budget and 2023 budget reforecast process will begin shortly with careful analysis and input from all AUA programs. Budget considerations of high priority will continue to be the maximizing of the annual meeting success as well as the advancement of the newly introduced Innovation Nexus. The AUA continues to strive to recognize and capitalize on revenue opportunities that are aligned with our mission and strategic goals. Of equal importance, the AUA has successfully mitigated costs over the last several years to positively impact the bottom line. Those efforts will continue to be an important aspect of the budget process. As a result, the AUA remains in a strong financial position and will continue to serve its members, as we have for more than 100 years.

The AUA Board of Directors continues to uphold their fiduciary responsibility to members, and focus on quality education, advocacy and support of critical issues, innovative research, and diversity initiatives that are vital to the urological community. As AUA Treasurer and as part of the AUA financial team, I welcome your input and questions.