November 6, 2009
M E M O R A N D U M
To: 2009 NAAE Finance Committee
From: Wm. Jay Jackman, Executive Director
Subject: 2009 NAAE Convention Finance Committee Agenda and Documents
Here are the documents for the NAAE Finance Committee meeting in Nashville: (right click on a link and select "save target as" to download)
- 2009 Convention Finance Committee Agenda
- 2009 Finance Committee Roster
- 2008-09 Independent Audit Report – FINAL (posted 11-09-09)
- 2008-09 Independent Audit Report – DRAFT
- June 30, 2009 Financial Compilation
- September 30, 2009 Financial Compilation (posted 11-09-09)
- 2009-10 NAAE Budget
- 2009-10 NAAE Budget Explanatory Notes
- Multi-year Budget Report (2001-2011)
- NAAE Agricultural Educator Relief Fund Report
As for all organizations, 2008-09 was a tough year financially. In my 14 years as NAAE executive director, 2008-09 is only the second year that NAAE has operated with a loss. The first loss year for me was my first year at NAAE (NVATA back then) and we were just beginning to get a true picture of the organization’s finances. In 2008-09, unrealized losses in investments and securities were devastating. In addition, 2008 fuel prices and airfares drove travel expenses out the roof, especially award winner travel for the 2008 NAAE Convention.
Note that NAAE’s net worth decreased $122,582 from June 30, 2008 through June 30, 2009. The unrealized loss on investments for the 2008-09 fiscal year was $123,524. So, if not for investments losses, NAAE’s net worth would have increased $942 in 2008-09 ... not bad considering the extremely high cost of airfares for the award winners for the 2008 NAAE convention.
We are already seeing a rebound in our investments. Between July 1, 2009 and September 30, 2009, we have gained back $51,384 of the $123,524 unrealized losses. However, it will take quite some time to gain back all of the losses. Fortunately, we have not had to sell off any investments to meet cash flow needs; therefore, all losses in investments continue to be unrealized.
The NAAE board has taken needed steps to trim expenses as much as possible so that our sponsored award programs will operate within budget. For example, cash awards and spouse airfares were eliminated in the 2009 award programs (OT, OYM, OMSP, and OPAP). Also, for TTTK, awardees are asked to double-up in sleeping rooms to save on travel expenses.
The board and staff are taking measures to see that NAAE operates within means during 2009-10. For this one year, the board chose to budget for a 2 percent set-aside for reserves rather than the customary 3 percent set-aside. The set-aside is intended to support the organization during tough financial times … and we are there. We are most hopeful that 2009-10 and beyond will bring a bright future for NAAE’s finances.
Current financial compilations for this 2009-10 NAAE fiscal year are posted on the NAAE website at http://www.naae.org/membership/financialdocuments/. Feel free to review NAAE’s financial documents at any time during the year.
Greg Curlin is the NAAE board consultant to this committee. Please feel free to contact Greg or me if you have questions between now and convention.
Thanks.
