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ABPMR Financial Guiding Principles
Once in a while we get questions like, “Where do my annual fees go?,” or “What are exam fees used for?” We always try to answer as clearly as possible: Exam fees help pay for the significant costs incurred to build, maintain, and update a current question item bank, as well as costs of assembling, administering, and scoring examinations with psychometric rigor. Annual fees help pay for new resources and innovations to improve the MOC Program (like LA-PM&R) as well as the IT infrastructure necessary to support the program; they also allow us to train and employ a customer service staff with expertise in MOC.
For questions like how much the board directors get paid (hint: nothing) or why the ABPMR has investments, see our previous article on ABPMR finances.
But we also like to get at the bigger financial questions: How does ABPMR manage its finances? Or, when it comes to investing in innovative program changes like LA-PM&R, how does wise stewardship of finances come into play?
Recently, the ABPMR board of directors has more clearly codified its answer to these larger questions, including adopting financial guiding principles to which they adhere for all ABPMR financial processes and decisions.
Because the ABPMR is committed to conducting business in a fiscally responsible manner under the highest ethical standards, the first guiding financial principle states that the ABPMR will effectively and responsibly manage the financial resources it relies on to accomplish its mission.
These three core elements also serve as guiding principles for the board:
1. Effective internal financial controls. This includes independent financial expertise, operating within sound financial policies, creating and monitoring an annual budget, and internal controls that result in accurate, reliable financial statements.
2. Sound accounting principles, fiscal responsibility, and regulatory compliance. This core element covers the role of the board finance staff and treasurer in helping the full board understand its role in the financial management of the ABPMR, annual audits by an independent certified public accounting firm, and executive committee review of the annual IRS Form 990.
3. Monitoring use of funds according to ABPMR mission. Mission-driven use of funds includes monthly staff review of financial statements compared to budget and prior year performance, forecasting financial projections while keeping aligned with the board’s mission and strategic plan, risk assessment, and periodic independent oversight of ABPMR financial activities.
Each principle has much more detail; above is just a summary. You can contact us if you’re interested in reading the full document.
We hope it’s clear: The ABPMR takes seriously its responsibility of managing finances ethically and to the highest standards. These are funds that come directly from examination candidates and diplomates, and the board’s intention is to use these dollars with care in the service of advancing its mission, for the ultimate good for the field of PM&R.
For more on ABPMR finances, please visit our Platinum Seal of Transparency Profile on Guidestar.
