1) Call to Order

President Maier called the meeting to order at 12:35 p.m. As Mr. Jaffee was not available at the time the meeting began, Mr. Maier appointed Mr. Hendler acting secretary.

Mr. Maier opened the floor to discussion of the audited 2006-7 financial statements, noting that Mr. Hendler had served on the audit committee and would be available to answer questions. Mr. Kiamie inquired into the Society contribution as reported in the financials. Staff reported that the contribution consisted of two parts: the first being a contribution of approximately $483,000 that related to FAE’s 2006-2007 operations. This component of the contribution was $7,000 less than the amount budgeted for the 2006-2007 fiscal year, the first time in many years that FAE did not require the full budgeted grant from the Society.

The second component was an extraordinary contribution of approximately $577,000, which was needed to offset a structural unrestricted fund deficit, which remained after a sizeable intercompany payable to the Society had been written off years earlier. The deficit was “structural”, that is, continued from one year to the next, because the Society’s grant each year was to be made only if FAE needed it to break even. The auditors had recommended for two years that an extraordinary contribution be made to FAE to offset this deficit. The Society’s Executive Committee authorized the extraordinary contribution at its August 20 meeting. This Executive Committee action was scheduled for ratification at the Society Board’s September 19 meeting.

Mr. Kiamie inquired of Mr. Hendler whether the audit committee had become aware of any issues on which the Trustees should be briefed. Mr. Hendler said no. The management letter, in his view, contained no substantive comments and there were no significant year-end adjustments. Other trustees commented on the triviality of the management letter’s comments, concluding that the accounting department must have been doing a good job, if the auditor resorted to comments of this nature.

Mr. Maier asked Mr. Schmelkin to give a status report on the pending CPE survey. Mr. Schmelkin noted that the vendor originally chosen to perform the survey pulled out at the last minute. Staff identified another surveying company, Whorton Marketing Research, which had distinguished itself recently with some work done for the American Society of Association Executives. The new consultant’s approach represented some improvements over what had been planned by the previous company in that he would be gathering information using both in-person interviews and a written survey document intended for broader distribution. Mr. Schmelkin and David Schneider hired in June 2007 to work on course development and in-firm sales, met with Mr. Kevin Whorton on September 7 who also interviewed Joanne Barry and Ernie Markezin. Following the meetings Mr. Whorton would begin preparing the survey document. Mr. Schmelkin indicated that the survey was expected to be completed by the end of 2007.

Mr. Maier reminded the Trustees that they would be meeting the following week jointly with the Society Board and opened the floor for a discussion of that gathering. Mr. Maier noted that his report to the Society Board was currently scheduled for 9:45 and the financials and the audit were currently set for discussion from 11:00 through 12:45. He suggested that the Trustees arrive before 9:00, the scheduled beginning of the meeting, and noted that the Trustees should remain after the joint meeting because they had some business items to complete separately.

Mr. Maier opened the floor for a discussion of other business. Mr. Schmelkin reported that current indications were that FAE did well during the busy season, meeting or exceeding budget. The Trustees requested updates at their September 19 meeting on FAE scholarship activities (including the timing for approval of scholarships in the current year), COAP, and POP usage.

There being no further business, the Trustees adjourned the meeting at 1:45 p.m.