The Committee recommends that the 1979-80 Budget adjustnents as presented, be approved.
I move that recommendation 1 be adopted.
(Adopted)
The Committee reviewed two suggestions relating to a reduced Inter- national dues structure for members of retirement a~e and for those under 30 years of age. It was the ll:nanimous feeling··· of the Corrnni ttee to retain the present International dues structure paid by all men- bers. The C~ITLmittee felt that i t was important to retain the same
International dues and service privileges in each club.
A pilot project, which involved a dual billing of both International and District dues, involving the Capital District was discussed.
Results of this test indicate that a District can reduce its admini- strative cost, and receive the benefits of better cash flow. The Capital District received several payments before they would have even rendered a billing unrlf:r their own system. A proposal, which would make this service available to all ~istricts will. be made to the
District Secretaries during this Council meeting. This Committee wish- es the Board to urge the acceptance of this new service by all Districts.
Further, the Committee compliments the Data Processing Department Staff for initiating this project, and the Capital District for their cooper- ation.
A review of Past Due Club Accounts Receivable balances and collection follow-up procedures was made. The current follow-up procedure calls for a report detailing those balances which are Currrent, 31-60 days, 91-120 days, and those that are 120 days old and more, to be sent to each District on a monthly basis. In order to bring our records up to date, the Committee feels that each District Governor and Secretary should review this report during this Council meeting and provide us with a verbal report on the status of the clubs in their District with past due balances.
The Committee reviewed the basis on which new member processing fees and supplies orders are paid. It is the feeling of this Committee that a "Cash" basis of payment for member processing fees and supply orders
·would facilitate an easier method of processing from both the Club and International level. However, since this Committee does not know how such a policy would affect the sale of supplies, we would like to refer the question of pre-paid supply orders to the Board Committee on Property and Supplies.
Recommendation #2:
The Committee recommends that as of December 1, 1979, a policy be established whereby all new member addition applications must
be
accompanied by the prepayment of the annropriate fees.
I move that recommendation 2 be adopted.
(Adopted)
-3-
The Committee reviewed the adopted recommendations from the Property and Supplies Committee of May,
1979,
which called·for the approval of the professional evaluation of the building for the most efficient use of space, by Donn and Associates. The cost of this survey was estimated to be $5,250.00, plus expenses of $500.00. The Committee feels that this expenditure should be made from the Building Expansion Reserve accounts.Recommendation
=/13:
The Committee recormnends that the cost of the evaluation of build- ing for the most efficient use of space be an expense of the Building Expansion Reserve Fund.
I move that recommendation 3 be adopted.
(Adopted)
The Committee reviewed the problems of some clubs in those countries which have monetary restrictions, and which either cannot, or have a very difficult time in making payments to International. The Committee is in favor of a Board policy whereby all clubs: 1) Make every effort to submit payments to Kiwanis International directly, 2) i:,,fuen circum- stances do not permit direct payments, that a bank account be opened in the name and ownership of Kiwanis International, and 3) Where a bank account cannot be opened in the name of Kiwanis International, an indiv- idual of local choosing be designated to open an account in trust for Kiwanis International, and that he be authorized under contractual agree- ment to collect all Kiwanis International financial obligations.
Reconrrnendation =//=4:
The Committee recommends that i t shall be the policy of Kiwanis In- ternational that all clubs:
(1)
Make every effort to submit payment to Kiwanis International directly;(2) \~1en circumstances do not permit direct payments, that a bank account be opened in the name and ownership of Kiwanis Inter- national;
(3) ·where a bank account cannot be opened in the name of Kiwanis International, an individual of local choosing be designated to open an account in trust for Kiwanis International and that he be authorized under contractual agreement to collect all Kiwanis International financial obligations.
I move that recommendation 4 be adopted.
(Voted, that this recommendation be adopted, and that i t be referred to the Laws and Policies Committee for insertion in Policies.)
-4-
A review of current Investment procedures was made by the Committee. At present, our practice is to invest Reserve funds and current operating funds in Certificates of Deposit in $100,000 lots. The Committee feels that a more advanta- geous method of investment would increase our earnings sig- nificatly. An arrangement can be made with the Continental
Illinois National Bank to effect a ''Short-Term Asset Manage- ment" plan, whereby our funds will be invested on a "daily basis," providing the best possible return on the use of our funds. This action entails a payment of management fees to the Continental Illinois National Bank of $700 annually, plus a percent calculated on the amount invested.
Recommendation #5:
The Committee recommends that Kiwanis International enter into an agreement with the Continental Illinois National Bank
& Trust Company of Chicago to invest funds on a daily basis under the "Short-Term Asset Management" program, subject to periodic review of the Treasurer and report to this Board.
I move that recommendation 5 be adopted.
(Adopted)
The Committee has reviewed, and is in agreement with the Board Cormnittee on Administration and Structure, to purchase the IBM System/3 Model 15B and to fund the cost to upgrade this equip- ment to the Model 15D. Th_e Committee is also in agreement that
the cost of this equipment be amortized over a period of five years, and that the necessary funds for this purchase be taken from Unrestricted Capital.
Recommendation #6:
The Committee recommends the approval to purchase the IBM System/3 Model 15D equipment as referred by the Administration and Structure Committee.
I move that recommendation 6 be adopted.
(Adopted)
The Committee reviewed the cost involved in the leasing of a studio apartment, located at 211 E. Delaware Place, Chicago.
The Committee feels that an appropriate amount of reimbursement to Kiwanis International for the use of this apartment should be as follows:
When used by Kiwanians travelling on a per diem basis When used bv Kiwanians not 11 " " " 11
"
When used by non-Kiwanians
$20.00 30.00 50.00
-5-
The Committee studied our Reserve funds for the purpose of establishing a definition for the use of these funds. As a result of the review of the Funded Reserve, i t is the opinion of this Committee that this fund be renamed the General
Operating Reserve, and that the established goal be to raise the level of this fund to meet general operating expenses for a minimum of six months. While reviewing the Building Expan- sion Reserve, i t was considered necessary to also consider a reserve for equipment. A goal of $2,000,000 was estimated to be necessary to meet future building needs and to create an Equipment Reserve to fund future Equipment requirements, such as upgrading our computer system, and other major equipment purchases. Further consideration of the Equipment Reserve will be given at the January, 1980 Board meeting.
A request from the Board Committee on Convention was reviewed, which indicated that a sum of up to $3,200 would be required to
assist the 1979-80 Convention Chairmen to meet local promotion expenses.
Recommendation #7:
The Committee recommends approval of an advance of up
to $3,200 to cover the local promotion costs of the Anaheim Con- vention.
I move that recommendation 7 be adopted.
(Adopted)
The Conrrnittee reviewed the current per diem rate allowed the Board and Past International Presidents. It is the feeling of the Committee that the current allowance of $45 per day may not be sufficient to adequately cover the actual out-of-pocket costs when travelling on Kiwanis business. We would like to request
that each Board member personally keep track of his actual expen- ses when travelling on Kiwanis business during this next admini- strative year, and including the actual cost of the travel expen- ses relating to the recent past District Conventions, and report to this Conrrnittee in summary, the amount of out-of-pocket costs, so that we may compare this amount with the per diem allowance.
Please include this on the back of each expense report as submitted.
Respectfully submitted,
MERALD T. ENSTAD RAYMOND W. LANSFORD DREW M. PETERSEN, M.D.
E. B. MCKITRICK, Chairman
KIWANIS INTERNATIONAL SUMMARY STATEMENT OF BUDGET & ACTUAL INCOME & EXPENSE PER I OD ENDED AUGUST 31 1979 & 1978
1978-79 %
OF BUDGET BUDGET VARIANCEANNUAL TO DATE TO DATE ACTUAL FAVORABLE ACTUAL
INCOME: BUDGET
1978-79 1978-79 1978-79
(UN FA VO RAB LE)1977-78
DUES-GENERAL
$1,928,500 91 .66 $1,767,663 $1,773,545 $ 5,882 $1,254,662
DUES-OVERSEAS EXTENSION284,625 91. 66 260,887 260,854
(33) 257,583
CHARTER FEES
40,000 89.00 35,600 29,590 ( 6,010) 36,380
INTEREST
47,000 91. 66 43,080 67,428 24,348 46,826
LIABILITY INSURANCE (NET)
13,000 100.00 13,000 22,816 9,816 25,869
LIFE MEMBERSHIP
105,000 85.00 89,250 94,908 5,658 88,572
PROCESSING FEES
235,000 94.00 220,900 217,932 ( 2,968) 221,296
MAGAZINE SUBSCRIPTIONS
829,125 91 .66 759,976 763,274 3,298 755,903
MAGAZINE ADVERTISING
242,000 88.00 212,960 255,168 42,208 219,066
GROSS PROFIT-SALE OF SUPPLIES
725,000 94.00 681,500 618,184 (63,316) 613,129
CONVENTION REGISTRATION FEES442,500 100.00 442,500 469,237 26,737 400,404
CONVENTION DUES
0 .00
00 0 0
CONVENTION TICKET SALES
63,000 100.00 63,000 70,492 7,492 49,073
MA I LERS
12,000 91,. 66 11 , 000 9,461 ( 1,539) 10,535
OTHER - -
0 .00 0 16,016 16,016 15,328
TOTAL INCOME
$4,966,750 $4,601 ,316· $4,668,905 $ 67,589 $3,994,626
EXPENSES:
BOARD-COUNCIL COMM. ADMIN.
460,44Lf 94.00 432,817 408,404 24,413 402,293
EXECUTIVE
291,469 92.00 268, 1 51 257,680 10)471 233,186
OFFICE MANAGEMENT
126,834 86.00 109,077 143,694 (31i,617) 134,190
PUBLIC RELATIONS
94,990 92.00 87,391 90,016 ( 2,625) 83,678
OVERSEAS EXTENSION
293,621 88.00 258,387 268,634 (10,247) 244,202
FIELD SERVICE
522,219 91.00 475,220 446,235 28,985 412,168
RECORDS & DATA PROCESSING
243,246 93.00 226,219 215,780 10,439 165,730
, 'PROGRAM DEVELOPMENT-CLUB SERV.260, 771f 92.00 239,912 235,969 3,943 245,148
CIRCLE K
36,478 127. 00 46,327 43,654 2,673 59,617
KEY CLUBS
15, 734 103.00 16,206 30,063 (13,857) 71,930
BUREAU OF ACCOUNTS
118,327 90.00 106,494 121,755 (15,261) 90,596
PUBLICATIONS
198,704 95.00 188,769 205,657 (16,888) 176,154
MAGAZINE
1,238,458 90.49 1,120,722 1,121,591
(869) 958,804
SUPPLIES
495,143 91. 00 450,580 438,338 12,242 420,327
CONVENTION
464,020 97.77 453,684 430,441 23, 2Lf3 418,456
TOTAL EXPENSES
$4,860,461 $4,479,956 $4,457,911 $ 22,045 $~116,479
EXCESS OF INCOME OVER EXPENSES