Message from the Treasurer

Ron Dimock

Transition to new fiscal year and budgeting consequences are complete.

With 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.

Fiscal year finishes with a very positive position.

Fiscal 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.

New financial management team

Since 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.

Fiscal restraint for Annual Meetings.

As 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.

For 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.