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ASA NEWSLETTER
 
 
October 2003
Volume 67
Number 10

Administrative Update


Section on Fiscal Affairs — ASA’s Financial Watchdog


Orin F. Guidry, M.D.

Roger A. Moore, M.D.


If asked their views concerning the ASA’s Section on Fiscal Affairs, most ASA members might say that it is a relatively uninteresting committee with little input or impact on the day-to-day affairs of the Society. I hope to convince you of the inaccuracy of this perception.

The Section is extremely active in drafting proposals and recommendations, developing checks and balances and providing philosophical changes in our approach to finance. Reverberations of these actions have effects that penetrate to the very core of the values and missions of ASA. The Chair of the Section on Fiscal Affairs is Orin F. Guidry, M.D., with myself serving as Vice-Chair. Members include: Thomas B. Bralliar, M.D., Jan Ehrenwerth, M.D., Richard R. Johnston, M.D., Lawrence J. Roy, M.D., and James M. West, M.D. Though the Board of Directors and the House of Delegates are ultimately responsible for fiscal oversight, they rely heavily on the conscientious and in-depth evaluation provided through the Section on Fiscal Affairs in recommending new policies.

Several critical issues have been dealt with by the Section over the past few years:

Auditors
ASA was surprised, along with many major corporations, that its auditor for many years, Arthur Andersen, no longer was able to provide auditing services. Auditors normally provide a report to the Section on Fiscal Affairs on a yearly basis with an evaluation of the auditor’s analysis and recommendations. Since auditing such a major organization as ASA is an absolute necessity, a “request for proposal” was sent out to many auditing firms in order to find a replacement. After a review of multiple proposals, the Section settled on Deloitte and Touche. In addition to simply changing auditors, the Section also came up with a number of new recommendations concerning the auditing process, not only for ASA, but for all other organizations and foundations associated with ASA management.

At the time that Deloitte and Touche was chosen, many of the organizations used different auditors or had no auditors at all. After a great deal of discussion, the Section on Fiscal Affairs proposed that all ASA-managed or associated foundations and organizations should be audited by the same firm providing services to ASA. With that decision came the increased responsibility for each of those foundations and organizations to take on the increased cost of the auditing. Based upon the Section’s recommendations, these proposed changes have been realized in 2003, resulting in a consistency in the auditing services of ASA and its associated foundations and organizations, which had never previously been present. 
 
Foundation Funding
Each year approximately $2 million of ASA’s funds are distributed to the Wood Library-Museum of Anesthesiology, the Anesthesia Patient Safety Foundation and the Foundation for Anesthesia Education and Research. There is no debate that each of these foundations contribute significantly to ASA’s mission and that each needs to be preserved and promoted so that they can effectively carry out their important purposes.

In 1990 the ASA Board of Directors approved a dues increase as a way of ensuring funding for the activities of these foundations while encouraging the foundations to contribute to their own endowments. This was done with the idea that after a reasonable period of time, the foundations could become independent. Each of the foundations has since made major efforts to increase their endowment funds, but each has also expanded its scope of involvements, and thereby the costs, in order to fulfill its respective mission. Because of this, the Section on Fiscal Affairs was asked to re-evaluate the status of the three foundations in regard to continued ASA funding.

After a great deal of reflection and discussion, the Section has recommended that a philosophic change toward these three foundations be made. Since these three foundations can be considered fundamental to the values and missions of ASA, they should never be totally independent; either financially or otherwise. At the same time, however, the amount of funding that will go to each organization on a yearly basis would have to be tailored to ASA’s financial situation. Since ASA has gone through a tough period over the past few years in regard to its own financial reserves, a mechanism was needed to tailor contributions from ASA to its foundations based on ASA’s own economic state. Therefore the House of Delegates will be considering recommendations that come from the Section on Fiscal Affairs, authored by Dr. Guidry recommending a major change in ASA’s philosophic approach to the three foundations, both in regard to future funding and to ensuring that each foundation can continue fulfilling its mission.

Expert Witness Program
The Section on Fiscal Affairs also has taken on the very important job of developing a reasonable estimate of the annual fiscal impact should ASA choose to develop an expert witness evaluation program. Under the guidance and direction of President-Elect Roger W. Litwiller, M.D., came a proposal to develop a program by which “expert” testimony against anesthesiologists of questionable quality could be evaluated by a committee within ASA and recommendations made concerning disciplinary action against members of our Society who provide egregious testimony. Though some direction is provided for anticipated costs by the American Association of Neurological Surgeons, who has instituted a similar program, developing an estimate for anesthesiology is still problematic. Once again, the Section took on this challenge and has come up with what it thinks is a reasonable annual impact in order to fund a project of this nature.

As these recent activities indicate, the Section on Fiscal Affairs is not simply a reticent, quiescent group of anesthesiologists quietly crunching numbers. It is an active and dynamic committee that is providing direction, suggestions and recommendations concerning wide-ranging programs that will affect every anesthesiologist. It is my great pleasure to have served on this committee in the past and to continue serving on this committee that is essential to the financial health of ASA.



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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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