Chapter XVI. Financial Affairs

1978

APA as a responsible investor

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 that 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 corporations in this country and abroad, will encourage these corporations to act humanely and in a manner which is beneficial to society.

Note: Due to the extensive time commitment this policy required of staff and in the spirit of the Council’s directive (above), the Finance Committee (Nov-Dec 2001) recommended that “APA delegates the voting proxies to their investment managers with the following exceptions:

  1. Companies which derive a significant portion of their revenue from the manufacture and sale of tobacco products for human consumption;

  2. Companies which derive a significant portion of their revenue from the manufacture, sale, or distribution of alcoholic beverages;

  3. Companies which derive a significant portion of their revenue from the manufacture and sale of firearms. These proxies will be voted by a representative of APA’s Public Interest Directorate.”

1992

Staff compensation oversight

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.

2000

Member dues increases linked to the CPI-U

Council voted to approve instituting the practice of increasing the APA dues annually by an amount linked to the consumer price index for all urban consumers (CPI-U).

2001

Financial updates on Directorates

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.

2002

Affiliate dues increases linked to the CPI-U

Council voted to approve instituting the practice of increasing the graduate student affiliate fees annually by an amount linked to the consumer price index for all urban consumers (CPI-U) and that the revenues generated from this increase be added to the APAGS budget. Council specifically approved a $1 graduate student affiliate fee increase from $40 to $41 for the 2003 dues year.

2010

Real Estate Cash Flow Principles

  • That the Association be disciplined in its fiduciary role whereby the Association’s operating budget be at least balanced annually (after consideration of the cash flow from buildings);
  • That the principle be established for the use of the increased real estate cash flow whereby the real estate cash flow used to subsidize operations be no more than $3.5M annually; and,
  • That the cash flow from the buildings in excess of the $3.5M be used to increase the Associations net worth by supplementing investments or reducing long-term debt by accelerated principal payments.

2012

2012-2014 Financial Forecast and Net Asset Allocation Plan

Based on the 2012 Budget and the 2013-2014 projections, Council voted to adopt the following Net Asset Allocation Plan including the 2012-2014 Financial Forecast:

  • Restrict capital expenditures to no more than $10M over the three year forecast period.
  • Continue to reinvest net realized gains/losses from the long-term portfolio.
  • Continue to reinvest all long-term interest/dividends into the long-term portfolio.
  • Continue to pay down the long-term debt per our current amortization schedule.
  • Continue to reflect the real estate tax abatement per 2006 Council action.
  • Consistent with generally accepted accounting principles (GAAP), the Association does not count any portion of estimated building equity in net assets.
  • The Association enthusiastically supports consideration of proposals (in the form of a business plan) for new revenue generating ideas.

Each year, based on actual results and an analysis of our net assets, future financial forecasts and the net asset allocation plan will be adjusted accordingly.


APA Long Term Portfolio

Statement of investment policy, objectives, and guidelines (PDF, 93KB)

2013

Selected Spending Policy Guidelines

In February 1994, the Council directed the Finance Committee to prepare a report on certain aspects of the Association’s spending policies in response to a Council New Business Item (NBI) 50L concerning responsible spending. Since that time, the original report prepared by the Finance Committee has been modified several times and will continue to be updated as the Council approves additional changes.

The following represents the current policy as approved by the Council of Representatives.

2013 Selected Spending Policy Guidelines (PDF, 1.33MB)