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Year in Review - Your Association
Year-end report: Your AEM finances
 AEM was able to
achieve a profitable year despite losing about 20 percent of its membership dues revenues with the consolidation (from companies with
dual memberships in the two predecessor groups). Here’s a brief rundown of AEM’s financial status at the close of its
inaugural year in 2002.
On January 1, 2002, AEM opened its balance sheet with both predecessor organizations contributing a total of $21 million in net assets.
AEM had an operating budget of $9 million for this transition year. With the dues lost from dual memberships, the year-end looks like
it will end up in the black before investment losses and appropriations.
2003 Budget Approved
The Construction Equipment reserve as determined by the consolidation’s Memorandum of Understanding (MOU) stands at $13.9 million.
Taking into account transition costs and appropriations, AEM’s operating capital is expected to end the year at $4 million.
The Board at its meeting in early November approved a 2003 operating budget of $10.6 million. The 2003 budget includes $985,000 in
appropriations for industry projects.
Operations Restructured
AEM has restructured operations to come up with further efficiencies by moving appropriations into operations. Previously,
appropriations and grants were drawn from non-operating reserves. Now the Association will use these reserves for additional industry
enhancing projects.
The new structure of the AEM budget means that Association staff will be challenged to find roughly $1.1 million dollars in additional
bottom-line dollars to cover the Association’s growing industry appropriation needs. AEM will look very hard at each request to
assure maximum value of the funds authorized.
The audit of 2002 AEM finances will be conducted during the first quarter of 2003, and members may review the results at the AEM
Milwaukee office.
Equipment Manufacturing Industry Salutes Emmett Barker >>
The
First Year - A Winning Season >>
Memorandum of Understanding Provides
Underpinnings for AEM Success >>
Welcome New Members >>
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