0) Call to Order

Vice-President Kearney called the meeting to order at 9:30 a.m.

1) Minutes of November 15, 2004, Meeting

Mr. Strangis moved and Mr. Frankel seconded a motion to accept the minutes of the November 15 meeting as written. Following discussion, the motion passed unanimously. Mr. Hoops and Ms. Fierstein did not participate in the vote.

2) Minutes of December 14, 2004, Conference Cal

Ms. Kinsella moved and Mr. Rosenbaum seconded a motion to accept the minutes of the December 14 conference call as written. Following discussion, the motion passed unanimously. Mr. Hoops and Ms. Fierstein did not participate in the vote.

3) Financial Statements Through December 31, 2004

Mr. Schmelkin reviewed the financial statements for the seven-month period ended December 31, 2004. He reported that education revenues, which stood at $2,704,304, were $228,523 ahead of budget. As a result, the net current year revenue (unrestricted) stood at $565,118. Mr. Schmelkin said that the prime revenue-generating period of FAE’s fiscal year was passed and that generally FAE would incur more expenses than revenue for the remainder of the year.

One trustee asked a question on the cash flow statement about FAE accounts receivable which showed a decline of $115,344. Mr. Schmelkin reported that this occurred as a result of getting a later than normal approval of the POP program for the 2005-2006 CPE year.

4) Draft Budget for 2005-06

Mr. Schmelkin reviewed the proposed FAE budget, which anticipated total revenue of $3,346,700 and total course expense of $1,421,000. As a result, the proposed budget contained a net education expense of $623,725 and, therefore the trustees would be requesting a grant in that amount from the Society.

Mr. Schmelkin reported that the budget assumed 402 classroom seminar days and 100 unique course offerings. Also, the budget numbers reflected 40 conference offerings. The numbers were based on the 2004 attendance numbers. The budget included an increase in member registration fees for eight-hour seminars from $270 to $275 and for eight-hour conferences from $275 to $295.

Mr. Schmelkin noted that the proposed budget contained two major differences as compared with prior years. First, rental expenses of $191,000 were being charged as part of FAE’s direct program costs to reflect the new conference center space at 3 Park Avenue. Second, the budget included a new position to support the Society’s intensified efforts to provide services to members in industry.

When Mr. Schmelkin completed his summary, Mr. Langowski moved and Mr. Strangis seconded a motion to approve the proposed budget. Following discussion, the motion passed unanimously. Ms. Fierstein did not participate in the vote.

Mr. Grumet noted that the COAP committee requested that the society dues check-off for COAP be increased from $10 to $25. Following discussion, Mr. Hoops proposed that unless there was an objection, FAE would ask the Society to increase the dues check-off for both COAP and the scholarship fund from $10 to $15. There were no objections.

By consensus, the trustees agreed to next meet at the call of the president.