APSA’S FINANCIAL OPERATIONS 2024-2025 OVERVIEW

The purpose of this report is to inform APSA’s Council about the Association’s financial health for the 2024-2025 fiscal year. This report provides a brief overview and assessment of APSA’s assets and current financial operations.

APSA remains in a sound financial position with ample resources for current and future operations. The combined Fair Market Value of APSA’s T&D and CFP Endowment Investments as of February 28, 2025, was $57.5 million, up slightly from $57 million on December 31, 2024, due entirely to favorable equity and bond market conditions that prevailed throughout 2023 and 2024. Since early March 2025, the Trump Administration’s handling of global tariffs has shaken the markets a bit recently, but we will continue to invest our assets in accordance with the current APSA Investment Policy Statement.

As of December 31, 2024, the most currently available balance sheet shows unaudited total assets were $62.3 million. This year-end asset balance comprised primarily of $27.96 million from the Trust & Development Investment Fund and $29.03 million from the Congressional Fellowship Program Investment Fund. Overall, unaudited year-end total liabilities and deferred revenues remained comparatively low at $3.1 million, with Deferred Revenue and Trade Payables making up 89% of APSA’s liabilities through December 31, 2024. APSA’s balance sheet remains strong as indicated by the low debt to equity ratio of 5.32%. The Mortgage Payable to Bank of America was fully repaid on July 1, 2024 – relieving APSA of $240,000 in annual mortgage payments in the coming years. Furthermore, all tenant net income generated after that date will no longer be reportable and taxable to the IRS on APSA’s Annual Form 990-T.

For the recently ended fiscal year, unaudited operating revenues totaled $10.13 million–which includes $1.6 million drawn from APSA’s endowment investments. After consideration of the quarterly 2024 funds drawn from investments, the change in net assets was up $200,000 before consideration of the endowment investment fund unrealized and realized gains of $7.38 million. APSA’s primary operating revenue sources are membership dues, annual meeting revenues, journals/publications, and grant income. It is APSA’s policy to draw annually up to 4.5% from the Trust & Development Fund and up to 5.5% of the Congressional Fellowship Program to cover related programmatic spending. APSA’s draw from the CFP fund has been historically below the allowable draw rate.

APSA Investments and Net Assets on December 31, 2024

APSA’s investment balances totaled $57 million at December 31, 2024, excluding the net worth of two debt free properties at 1527 New Hampshire Avenue, NW and 1528 M Street, NW in Washington, DC. As of the date of this letter, both properties are now fully occupied by APSA staff or outside tenants. Below is a summary of Vanguard and Fidelity Investment holdings on December 31 compared to APSA’s Investment policy:

APSA reported a combined $59.2 million in total unaudited net assets at December 31, 2024. Of this net worth, five million dollars are Permanently Restricted (MCI Congressional Fellowship Fund) with $37.2 million Temporarily Restricted and a remaining $17 million in Unrestricted and Board Designated net assets.

Looking forward to 2025

As we completed the first quarter of 2025, APSA’s equity Investments have struggled recently due to the current administration’s approach to targeted tariff policy uncertainties, fears of slower economic growth forecast, higher inflation and dwindling growth. For the three-months ended March 31, 2025, the Dow Jones, S&P 500 and NASDAQ indices were down 1.28%, 4.59% and 10.42%, respectively. The fixed income market fared better in the first quarter of 2025 with the Bloomberg Aggregate Bond Index returning 2.54%. Both staff and APSA’s Investment Committee meet quarterly with Ian Jones, APSA’s outside Investment Advisor, to ensure the portfolio is rebalanced regularly in compliance with the Investment Policy Statement. APSA T&D and CFP endowments stood at $55.20 million on March 31, 2025.

APSA’s 2025-26 DDRIG NSF award has continued to be funded by NSF despite recent uncertainty and the effects of DOGE efforts to the contrary; however, future federal awards remain uncertain as of the time of this report. APSA’s primary sources of revenue are member dues, Annual Meeting registration/sponsorship and exhibitor income, federal and non-federal grants and contracts, publication royalties, tenant rent and interest/dividend income. Similar to 2024, we remain on target to meet the 2025 budget in each of these primary revenue categories – which account for 76% of the overall 2025 APSA operating budget. APSA’s major 2025 expense categories: Salary and Fringe Benefits, honoraria/editorial support, awards and annual meeting expenses are currently in line with the 2025 Budget. With the administration’s recently reported stance towards international scholars who legally reside in the US, the annual meeting staff are pursuing a limited virtual attendance option to allow scholars who have concerns about attending the September event in Vancouver, BC in person or concerns that their travel to and from the 2025 Annual Meeting could encounter difficulties returning to the US. These virtual options may result in increased Annual Meeting expenses. Also, given the uncertain economic conditions faced by our scholars and institutions, we will be monitoring the Annual Meeting registrations, exhibitor and sponsor revenues and will keep Council members apprised of any anticipated revenue shortfalls related to the Annual Meeting.

APSA continues to seek more effective operations and higher member satisfaction. APSA is evaluating our current AMS, which is now more than 10 years old. Staff will update the Council accordingly, once the software evaluation is completed.

APSA staff continue to be physically in the office two days a week since July 2022 and hybrid for the remainder of the week. APSA’s approved 2025 Operating Budget is again estimated for essentially no profit or loss for the year.