To members
of the AIA,
Our new financial year is off to a healthy start
with encouraging news. Our solid performance last year has been confirmed
by the 2001 financial audit. We have received confirmation of the dissolution
of AEC, and, finally, our continuing commitment to operating in a disciplined
and businesslike manner is demonstrated by the fact that we are ahead
of budgeted targets for the first quarter of 2002.
We
have received an unqualified audit opinion for 2001 from our auditing
firm, Pricewaterhouse-Coopers. Net income and total net assets for 2001
exceeded our plan. The completed audit confirms that total net assets
improved by $3.1 million and now stand at a positive $1.66 million. This
resulted from three factors:
1. AECs total lifetime cost to the AIA was
far less than expected
2. Income from the extension of the magazine contract with McGraw-Hill
3. The 2001 operating budget provided a positive contribution to assets
of $1.4 million, exceeding the budgeted goal.
This is the second year in a row during which The
American Institute of Architects operating revenues have exceeded
expenses.
AEC officially dissolved
The Delaware Secretary of State has confirmed the corporate dissolution
of Architects-Engineers-Contractors, Inc. (AEC), effective January 30,
2002. As a result, AECs corporate life has officially ended.
First quarter ahead
of plan
Our balanced budget goal continues into the first quarter of 2002. Operating
expenses for the first quarter of 2002 are down. Combined with a slightly
higher-than-planned first quarter revenue, our operating net income is
higher than budgeted as of the end of March. Overall, our first-quarter
net income exceeds our plan by 6.8 percent.
Going forward
We are progressing toward member-service excellence and feel confident
that the growing financial health of the AIA means even better professional
services for our 70,000 members. We have operated with balanced budgets
and achieved surpluses for the last two years. We intend to make 2002
the third year in a continuum of fiscal stability and asset growth.
I welcome your comments,
Norman L. Koonce, FAIA
Executive Vice President/CEO
Copyright 2002 The American Institute of Architects.
All rights reserved.
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