Results of the 1998 audit revealed an increase in net assets from operations of one hundred eighteen thousand dollars ($118,000). The Society collected two million three hundred twenty-five thousand dollars ($2,325,000) in revenues and disbursed two million two hundred seven thousand dollars ($2,207,000) in expenses before an extraordinary expense. Total revenues decreased 5% over 1997, primarily due to the receipt of corporate sponsorships in 1997 for 1998 activities. However, this decrease in revenues was offset by better containment of expenses, which resulted in a 4% decrease in comparison to 1997. Membership and Publications revenues showed decreases over last year, while Meetings and investment income experienced significant increases.
The Society continued to expand existing programs while pursuing its new growth goal. Two one-day education programs were presented during the year. The first, Collaborative Disease States Management in Home Infusion was made possible by an educational grant from Baxter Healthcare. This meeting was held on August 22 in Chicago, Illinois in conjunction with the American Society of Health-System Pharmacists (ASHP) Homecare '98 Meeting. An educational grant from Abbott Laboratories partially funded the second program, Current Strategies in the Management of Vascular Access Device-Related Complications. This meeting was held prior to the Fall National Academy in Phoenix, Arizona, November 6-8. In addition, INS received a grant from Abbott Laboratories for the sponsorship of a 1999 educational program. Approximately 56% of total education revenue came from meeting registrations and 44% from exhibiting manufacturers. Commercial manufacturers sponsored all social events at the 1998 INS Annual Meeting and Industrial Exhibition in Houston, Texas.
Publications experienced a 38% decrease in revenue over 1997 as a result of sponsorships received in 1997 for 1998 products. In January 1998, the Society published the Intravenous NursingStandardsof Practice (revised, 1998) and sold nearly two thousand (2000) copies during the year. In addition, the revised CRNI Exam Preparation Audio and Video Tape Series were produced and sold. Both products were supported by corporate grants received in previous years. Additional income was received from the sale of five hundred fifty (550) copies of the INS textbook Intravenous Therapy: ClinicalPrinciples and Practice.
Investment income increased 36% over 1997. For the first time, the Society established definitive investment policies and procedures approved by the Board of Directors. The results of these efforts produced a 13.2% return during the year.
Strong financial controls remained in place throughout the year, which helped contain expenses and resulted in a 4% decrease in operating expenses. During the year, the Society was involved in an arbitration proceeding in connection with the termination of its former Chief Executive Officer. The arbitration decision upheld INS' termination of the former CEO for cause and awarded INS one hundred forty-three thousand, five hundred four dollars ($143,504) from the former CEO for the misappropriation of funds. The decision also upheld the terms of INS' contract with the former CEO, which resulted in INS incurring legal costs of the former CEO and a payment to the former CEO for salary withheld by INS pending the arbitration decision. INS also incurred significant legal costs in defending the arbitration. Total costs of this arbitration proceeding in 1998 amounted to six hundred seventy-three thousand, four hundred nineteen dollars ($673,419), which has been presented as an Extraordinary Expense. This expense was paid from the sale of investments and did not affect the operating cash account of the Society. In addition, the balance of related expenses to be paid during 1999 is estimated at approximately forty-seven thousand dollars ($47,000). Again, these funds will be taken from investments and will not interfere with the normal operating activities of the organization.
Lastly, the Society continued its fundraising efforts on behalf of the Gardner Foundation. Fund assets totaled eighty-five thousand dollars ($85,000) as of December 31, 1998. Additions to funds amounted to twenty-one thousand dollars ($21,000) with expenditures of fifteen thousand dollars ($15,000). Contributions included a grant in the amount of ten thousand dollars ($10,000) from Johnson & Johnson Medical, Inc., investment income of five thousand dollars ($5000), and the balance from individual donations. Expenditures were for the disbursement of scholarships and printing and mailing costs related to the 1998 Capital Campaign.
In conclusion, an independent accounting firm audited the INS financial statements and issued a clean opinion.
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