Message from the Treasurer
Transition to new
fiscal year and budgeting consequences are complete.
the closing of the books on June 30, 2007, the Society completed its
first full year with the new fiscal year. The financial personnel at
Burk & Assoc., together with an auditing team, have worked
effectively to integrate the calendar year budgets for Dues and
Memberships, as well as for ICB journal income and expenses, into the
new fiscal format. This involved some complicated splitting of
revenues and expenses into the two halves of the new fiscal year.
Going forward, there should be fewer problems. The primary advantage
remains that now the budget for an annual meeting will have been
approved 12 months earlier, as is the case for the upcoming meeting
in San Antonio.
finishes with a very positive position.
2007 ended with a total fund balance for the Society of $1,963,749 in
comparison to the last full 12-month fiscal year ending 12-31-2005
with a balance of $1,883,934. It should be noted that 'fiscal'
2006 was a 6-month "year" that was necessary during the
transition from the old to the new fiscal year. The continuing
financial health of the Society is largely a consequence of the
recent successes with the investment portfolio. The general
operating budget finished about $85,186 in the red. However, this is
considerably less than the predicted deficit for 2007 of $101,746.
the Spring Newsletter the Society has returned to the professional
financial management of Matthew Tederick and his associates at
Charles Schwab. When the Society first began to have a portfolio
managed professionally, Mr. Tederick was with LPL Financial Services.
After a brief hiatus in a different line of work, Matt has returned
to strategic asset management in affiliation with Schwab. In
conjunction with the Finance Committee, he has modified the Society's
existing portfolio to one with a stronger emphasis on growth funds,
especially large cap growth, and a larger position in international
mutual funds. The Society no longer is invested in a REIT, although
the previous timing, initially recommended by Matt, served the
Society especially well. The outcome of this rebalancing is a
projected greater return with less risk than the previous positions.
The Finance Committee is very pleased that Matt has returned to a
financial management company. The current balance of the invested
portfolio is $1,187,574.
for Annual Meetings.
was outlined in the Spring Newsletter, the cost-containment measures
approved by the Executive Committee for future annual meetings will
be in effect for the 2008 meeting in San Antonio. The major elements
of these measures are (1) capping all Society-wide ‘functions',
such as receptions, coffee breaks, etc., at $65,000, (2) constraining
divisional socials to encourage joint events and not planning for
socials to substitute for evening meals, (3) capping student support
for compensated rooms or registration at $60,000, and (4) initiating
a new policy that limits any one student's eligibility for such
compensation to attendance at 3 annual meetings. This latter measure
is grandfathered in and does not affect students who received
compensation at meetings prior to the one in San Antonio.
Revenue from the
new endowment fund for symposia.
the first time revenue from the new symposium fund, the principal of
which stands at $106,450 with the commitment of $100,000 by the
Executive Committee and donations from approximately 7 members since
the meeting in Phoenix, will be available to offset some expenses
associated with symposia in San Antonio. Members are encouraged to
consider contributing to this or other endowed funds by visiting the
wonderfully newly designed Society web pages.