Exhibit 1125 REPORT OF THE COMMITTEE ON PAST PRESIDENTS
TO THE MEETING OF THE ~NTERNATIONAL BOARD OF TRUSTEES October 2-3, J.980
Date of Committee Meeting: October 2 -3, 1.980
Place of Comtnittee Meeting: Kiwanis International Building, Chicago, Illinois Present: Members - Lorin J. Badskey, Wes H. Bartlett, Reed C. Culp, Roy W. Davis,
William M. Eagles, M.D., Donald T. Forsythe, ToR. Johnson,
Edward C. Keefe, James M. Moler, Ted R. Osborn, Walter J.L. Ray, Stanley E. Schneider, Hilmar L. "Bill" Solberg, Charles A. Swain, Merle H. Tucker, Albert J. Tully, Robert F. Weber, I. R. Witthuhn, and 0. E. Peterson (Honorary Member).
Chairman- ~aurice Gladman
Absent -
H.
Park Arnold, Fred G. McAlister, Q.C., Donald B. Rica, and.J. 0. Tally, Jr.
Following the call to order by the Chairman, the invocation was given by Past President Roy W. Davis.
The Chairman informed the Committee that appropriate messages will be sent to those who were unable to attend and that he would send a letter on behalf of the Committee to the widow of Past President Harold M. Heimbaugh.
The minutes of the June 20, 1980 meeting of_ the Committee were approved as
submitted.. Past President Hilmar L. "Bill" Solberg was welcomed as a new member of the Committee, and the staff reviewed the program for the 1980 Kiwanis Int~r- national Council.
The agenda for the meeting was approved, and the Chairman stated that additional items could be added as the Committee so desired.
Distinguished Governor, Lieutenant Governor, and Club President Award Programs The Chairman noted that the Committee, during its September 27, 1980 meeting, asked the International Board to review the Distinguished Award--programs of the organ- ization and the material items presented.
Staff reported that the Board,
at
its June, 1980 meeting, changed the criteria in the Lieutenant Governor and Club President Award programs to eliminate!!extenuating circumstances" as a. factor, and has changed item Ill in the Distinguished Governor criteria relating to membership growth. The Committee was also informed that the budget for the Distinguished Programs for 1980-81 had been reduced to
$26,500 by the elimination of the medallion for Distinguished Governors and by placing awards· for Distinguished Club Presidents on a sales basis to districts.
The Committee is of the opinion that the awards programs do not place proper emphases on community service; that the criteria makes it too easy to become an a.ward recipient; and that the large number of annual recipients makes the awards meaningless. The Committee also questions the merits of having participation only
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in the current Major Emphasis Program as a factor since many clubs successfully carry on a Major Emphasis Program year after year.
Recommendation #1:
The Committee recommends that the present Distinguished Awards Programs be eliminated and asks that the International Board develop a new Dis-
tinguished Awards Program emphasizing community service and setting more stringent criteria.
International Convention Promotion Budget
The Committee reviewed again the promotion budget of $10,000 for the New Orleans Convention Host Committee and stated its objection to the fund as expressed at its Anaheim Convention meeting. The Committee was informed by staff that the budget for the Minneapolis Convention Host Committee had been reduced to $6,000.
The Committee reiterated its concern that promotional budgets for International Convention Host Committees are inappropriate.
Recommendation #2:
The Committee recommends that the International Board rescind its policy to provide International Convention Host Committees with promotionai funds.
Cash/Credit Card Sales
The Committee was informed that, as of October 1, 1980, supplies from Kiwanis International will be available on a cash/credit card sale basis; that this policy will apply to all Kiwanis clubs, districts, and elected leaders; and that efforts will be made to accommodate Kiwanians and clubs in areas which have
monetary restrictions. Staff noted that the new 1980-81 Official Supplies Catalog will be distributed to the 1980 International Council.
Status of Kiwanis International-Europe Office
Staff told the Committee that relations with Kiwanis International-Europe are strained and that the situation centers on personnel in the Zurich office. It was explained that the status of the current Administrator/Secretary of Kiwanis International-Europe was not clear and that previous action by the International Board in this regard had not been accepted. The status of a new Field Service Representative, employed by Kiwanis International to assist in the Zurich office, is also in question.
The Committee agreed that the situation needs to be clarified as soon as possible so that the agreement between Kiwanis International and Kiwanis International- Europe is properly carried out by both parties.
Recommendation #3:
The Committee recommends that the President be given full authority to definitively resolve the personnel problems with Kiwanis International- Europe.
-3- Remarks of the International President
International President Merald T. Enstad was welcomed by the Committee, and he noted that the International Board was confronted with major decisions during this meeting.
He told the Committee that the retention of members will be a priority item of his presidency and that he had asked the Board Committee on Membership Growth and
the staff to concentrate ·on the problem. He agrees with the Committee that there must be a proper balance between membership retention and growth.
The President informed the Committee that new club building efforts in 1979-80 had been highly successful and that the reduction of the Field Service staff had not been detrimental to the organizati.on' s efforts. However, he noted that there was a need to provide more training for Field Service Representatives so that
their productivity in the field would be increased. He commented that working with Kiwanis club problems would be stressed, as well as new club building efforts.
The President expressed his appreciation to the Past Presidents who comprise the Special Committee on Kiwanis International Structure and indicated that their continued assistance is desired by the International Board.
The Committee was informed that the registration fee for Kiwanians for the 1981 New Orleans Convention had been raised from $45 to $55, but the $20 registration fee for ladies will remain the same.
Remarks by the President-elect
President-elect E. B. "Mac" McKitrick told the Committee that he intends to strengthen the role of International Committees by appointing a coordinating group related to the primary concerns of the committees. The required Inter- national Committees will be appointed and they will report to one of the five coordinators. He told the Committee that he hopes that the Coordinators will meet in March during the Conference for Governors-elect, again during the 1981 New Orleans Convention, and that only these five coordinators will attend the
1981 International Council. $14,000 has been appropriated by the International Board to cover the costs involved for the Coordinators.
The President-elect told the Committee that he intends to assign members of the International Board to the district conventions of Kiwanis International-Europe in 1981-82 as a means of maintaining proper relations with that federation.
In response to questions from the Committee, the President-elect noted that new auditors had been employed by Kiwanis International because previous auditing
firms had not paid proper attention to the deficiencies in our financial operations.
He commented that the International Board is the policy-making body of the organi- zation and that the Secretary (Executive Director) must be responsible for carrying out the Board's policies and for handling the administrative activ:i.ties of the General Office.
Kiwanis Club Delinquencies
The Committee reviewed a report, as of August 26, 1980, on the delinquencies of Kiwanis clubs worldwide. Staff informed the Committee that approximately $34,000 in past due accounts receivable had been written off by the International Board during its October, 1980 meeting and that $60,000 is deemed to be collectable.
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Staff told the Q:nnmittee that District Governors and Secretaries receive monthly reports of the delinquencies of the Kiwanis clubs in their districts as well as copies of correspondence sent to clubs being placed on suspended status. The
Committee expressed its opinion that this information should be provided to members of the International Board prior to all official visits and that members of the Board should review delinquencies with district boards during district conventions and mid-year conferences.
The Committee also suggested that the auditors be asked to give their attention to the verification of accounts receivable and to send out statements to all clubs with delinquencies. Staff informed the Committee that the Club Service Department will be assisting the Finance Department in contacting delinquent
clubs by telephone where possible.
The Committee suggested that delinquencies be given attention at the annual Con- ference for Governors-elect, at the International Convention and Council meetings of the District Governors and Secretaries.
Staff noted that the Board Committee on Finance intends to fully explore the delin- quency problem and that the Committee will be advised of their findings.
In discussing delinquencies of overseas Kiwanis clubs, members of the Committee expressed the opinion that extension to any country should not be undertaken until all financial and banking arrangements are completed and that it should be the re- sponsibility of the Finance Department to direct and control all such arrangements.
Recommendation #4:
The Committee recommends that the Finance Department of Kiwanis Inter- national be authorized to have control over all financial arrangements and policies and that clear lines of communication be developed between that department and the Extension Department.
Kiwanis International Board Structure
James M. Moler, Chairman of the Special Committee on Kiwanis International Structure, reported on the meeting held by his Committee with the Board Com- mittee on Administration and Structure. His committee's recommendations and
the previous recommendations of the International Board related to the structure of the Board were fully reviewed, and plans are for some implementation to be made during the 1981 New Orleans Convention.
The Committee wishes to express its opposition to any plan to restructure the International Board that provides for specified representation unless such a plan includes a rotation procedure.
Farm-City Week
The Chairman told the Committee that the International Board has rescinded its April, 1980 action that ended Kiwanis International's role as the coordinating agency for the Farm-City Council. He noted that reconsideration was based upon continuing the relationship for a one-year trial basis upon the promise made by the Farm-City Council that it would reimburse Kiwanis International up to $15,000 for expenses.