During the fiscal year ending March 31, 2018, the AACCI Finance Committee, Board of Directors, and staff stayed on track throughout. We were diligent in looking for ways to invest within the association to enhance member value and increase revenue, identifying “Value Creation” initiatives that will move the association forward into the next fiscal year and beyond. We will continue to focus our attention on our financial health, while striving to share quality cereal science information globally through our signature programs. Several of the Value Creation initiatives introduced in FY2017 drove our focus in FY2018: Cereal Chemistry was moved to a commercial publisher to gain greater exposure and make it easier to be discovered by new readers; steps are being taken to reinvent Cereal Foods World (CFW) thanks to its new editor-in-chief and help from guest editors and an outside consultant; declining attendance at the AACCI Annual Meeting led us to rethink the model for Cereal & Grains 18 in London; the transition of AACCI Check Sample to AOCS continues to move this program forward; partnering with Elsevier has begun to show a significant decrease in book publishing costs, and several new titles have been acquired.
The process of transitioning the publication of Cereal Chemistry to a partnership with Wiley began with a $200,000 signing bonus to AACCI, which gave credence to the strength of Cereal Chemistry and to the competitive process of working with a commercial publisher. The transition of all subscriptions, advertising, and royalties to Wiley began on January 1, 2018. The AACCI Approved Methods of Analysis continues to grow and remains one of our most important assets, showing an average compounded annual growth of 30% over the past 10 years. AACCI’s relationship with Elsevier continues to strengthen as we develop and grow our book marketing plan. Although there were no new books released in FY2018, we are scheduled to release six new books in FY2019. CFW continues to be a flagship, member-valued publication. Investment in migrating CFW to an online platform with improved member experience of the content, as well as mobile access, was implemented during the past year. The new editorial approach with Editor-in-Chief Jon Faubion and guest editors developing content for each issue is enhancing the content quality, and an effective operational plan is successfully identifying a pipeline of motivated contributors. Increased communications and social media promotion are adding to the increased visibility of the publication as well.
The AACCI Annual Meeting continues to offer an opportunity for us to invest in young professionals and students, as evidenced by the student travel awards granted, student activities that highlight new technologies and techniques, and inclusion of emerging science and technology in every programming segment, increasing the appeal to a global audience. Additionally, the AACCI Foundation remains active and strong, providing more than $30,000 in scholarships to students who are excelling in relevant curriculum. For Cereal & Grains 18, there was a strong international and student presence.
For FY2018, the net operating profit was $212,110. This exceeded budgeted profit by $198,991. Operating revenue came in over budget, with expenses contained at $2.09 million, coming in $117,000 underbudget and $316,000 better than the previous year.
I want to take this opportunity to thank the entire AACCI organization for their continuing commitment to financial responsibility, which ensures that we as an organization can remain focused on quality and innovation, while providing enhanced member value through new products and services.