Finance and Personnel Committee

2007 Annual Report

Your Society continues to operate in a fiscally responsible manner. The Financial Records are maintained on an accrual basis in accordance with good accounting principles and practice. Budgets were prepared and monitored and we managed to stay within the budgeted amount. The Foundation contributes $40,000 a year to help pay operating expenses. The Financial Reports have improved in usefulness and timeliness. They are distributed to all of the current board members on a monthly basis for increased board visibility.

The investment practice is to be conservative but to maximize the fixed income stream received. We consolidated our accounts at Charles Schwab Inc where the interest paid is substantially higher than West Gate Bank was paying. Our largest investment, the Life Membership account, is primarily invested in fixed assets: bonds laddered over ten years to spread the interest rate risk and with the interest earned used for operating expenses. The Board has approved investing up to 10% of this fund in equity instruments depending on market conditions. We have the beginning of a reserve fund established thanks to bequests we received.  Donor Designated money not planned for short term use has been invested in Money Market funds.

The money held in the US Bank account for building maintenance was used to re-roof all the building on the Lincoln Campus. This was necessary due to the deteriorating condition of the roofs. Several other minor maintenance items were fixed. Our concern is to maintain the Campus in good condition for future visitors. The Spring Work Week accomplished cleanup of the grounds and organization of the Museum storage area. The Foundation manages some Society money reserved for future Building maintenance and Museum acquisition and maintenance.

There are some concerns: Our inventory of books continues to be high, however this caused by replenishing best sellers and adding several new books. Donations are good but a lot of it is Donor Restricted in its use. Operating expenses have increased slightly but the overall financial condition of the society is good. Careful monitoring of expenses and cash flow is keeping your Society on track.

The Society 2006 Financial Statements were audited by Gary Riggs, CPA, Partner in Waldron, Riggs & Lloyd CPAs, P.C. In his opinion the financial statements present fairly the financial position of AHSGR. See the convention brochure for full details.

Staff changes this year have been minor. Headquarters personnel continue to perform their duties in an excellent manner. Diane White (Office Manager) is doing an outstanding job. All members of the staff were given annual performance reviews and salary increases as warranted.

Respectfully Yours

Alvin H. Hart Treasurer

Chair of the Finance and Personnel Committee