Exhibit ://=11 REPORT OF BOARD COMMITTEE ON FINANCE
TO THE MEETING OF THE INTERNATIONAL BOARD OF TRUSTEES JUNE. ~2J-22, 1973
Date of Committee Meeting: June 21, 1973 Place of Committee Meeting: Montreal, Quebec Present: Members - Roy W. Davis, Maurice Gladman
Chairman - Charles M. Roberts
Staff Members - Thomas W. Fitzgerald, R.P. Merridew, L.A. Hapgood Others - Lorin J. Badskey, William M. Eagles, M.D.
The committee reviewed the financial statement of Kiwanis International for the eight-month period ended May 31, 1973. It was found in order and approved.
Attached is the Comparative Statement of Income and Expenses for the periods ended May 31, 1973 and 1972. As indicated, income for this year at the eight- month mark amounted to $2,098,661 -- or an improvement of almost $180,000 during the last twelve months. A review of the income accounts would reveal that the increase in income, as we have repeatedly indicated throughout this administrative year, can be attributed for the most part to dues, liability insurance, processing fees, magazine advertising, the gross profit on the sale of supplies, and convention registration fees. With the exception of the in- come accounts for magazine advertising and the gross profit on the sale of supplies, all other increases in income are the result of the dues rate or fee increases.
You will recall that for the first two and a half months of last year we were affected by a price and wage freeze. Therefore, when comparing this year with last at the eight-month period, we have exactly fifty percent more income for the first six months of this year, because there was no restriction in the collection of the dollar increase in dues, and the dollar increase in process- ing fees.
As you know, the convention dues account reflects a significant increase in income over the last twelve months. However, again keep in mind that the amount in this account represents a prorated allocation from general dues.
This year the allocation to the Convention Department for a full twelve months is approximately $4,000. Last year the actual amount of general dues needed for the convention operation was $LJ.8, 000.
Expenses at May 31, 1973 amounted to $1, 7lJ.l, 150 -- or an increase in the past twelve months of only $l~5, 000. At this point in the year it appears that most of the major expense items are in line with our budget or forecasts. Those items which need to be adjusted will be reflected later in this report.
The committee again reviewed the proposed budget for the 1973-74 administra- tive year, which reflected the net income figure of $36,468.
Recommendation #1:
The co1mnittee recommends that the budget for the 1973-74 administrative year with a net income figure of $36,468 be approved.
I move that recommendation 1 be adopted.
The committee discussed the recommendation from the Board Committee on Property and Supplies for additional funds for the remodeling of the room in the General Office to be used for the archives. The committee was also advised that approx- imately $2,500 of the total amount needed for this remodeling is included in the current budget. Therefore, there will only be need for a $5,000 adjustment in the current year budget to care for this additional expense. We have indicated in this report that the account where we normally charge this expense, C-7 Office Management, has been adjusted by $5,000.
Among those clubs involved in .. the charter revocations at the April Board Meeting, the following clubs had accounts receivable balance due Kiwanis International at that time:
KIWANIS CLUB OF:
Lafayette, Alabama
Toluca Lake, Los Angeles, Calif.
East Marietta, Georgia
Chain O'Lakes, Antioch, Illinois South Topeka, Kansas
Athol, Massachusetts Nelson, Nebraska Liverpool, New York
Outer Banks, Kill Devil Hills, N.C.
Germantown> Ohio Eufaula, Oklahoma Madill, Oklahoma
Northwest Ardmore, Oklahoma Tishomingo, Oklahoma
Twilight, Portland, Oregon Providence, Rhode Island
Tulsa-Air & Industrial, Oklahoma Falfurrias, Texas
Houston-Meyerland Plaza, Texas Agincourt, Ontario
Oxford, Nova Scotia
Mexicali, Baja California, Mexico
AMOUNT
$ 55.25 78.47 84. 73 55.67 76.34 299.98 67. 96 12.00 110. 70 65.25 234. 26 52.22 66.08 111.51 26.25 126.00 104.26 .55.21 1.55.31 77 .80 90.86 71.50 2b077 .61
As you can see, the total amount involved in this write-off of accounts receivable is $2,077.61. Over $1,950 of this runount represents outstanding dues and magazine subscriptions.
Recommendation #2:
The committee recommends that the write-off of the accounts receivable totaling
$2,077.61 for the clubs listed above be made.
I move that recommendation 2 be adopted.
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The Program Development Committee has made a recommendation concerning a change in Kids I Day materials and promotions for next year_. This first year there will be a
new booklet, and the overall expenses for Kids Day for 1973-74 will amount to ap- proximately $10,000. This amount will be reimbursed to us from the Kiwanis Inter- national Foundation.
Recommendation #3:
The Corrnnittee recommends that the expenses involving the change of materials for the Kids' Day Program for 1973-74 be approved, and that the amount involved will not exceed $10,000.
I move that recommendation 3 be adopted.
The committee reviewed the annual list of budget adjustments which affects every department within the General Office. We are in agreement that these adjustments as listed below be approved:
DEPARTMENT EXPENSES:
Board, Council & Cornrnittee Administration A-10 Executive
A-20 B-1 B-2 B-26 B-Pension Office Management C-1
C-2 C-2a C-6 C-7 C-9 C-9a C-32 C-Pension Public Relations D-1
International
Field Service
D-2 D-2a D-Pension
E-1 E-2 E-2a E-Pension
F-1 F-2 F-2a F-75 F-Pension
1972-73 BUDGET
$ 20,000 60,000 71,180 35,985 3,500 9,000 10,500 103,095 9,000 5,000 105,000 50,000 35,000 15,000 10,500 17,700 15,450 1,200 3,000 26,000 12,284 500 4,000 16,300 24,420 1,800 6,500 5,500
ADJUSTMENT INCREASE
(DECREASE)
$( 5,000) 10,000
3,650 ( 6,045)
10,000 250 990 4,533 3,000 2,000 5,000 2,000 9,300 15,000 ( 4,000)
700 84.6 ( 600) ( 500) ( 2,850) 688 100 ( 1,400)
1,000 672 ( 1,200)
6,500 600
ADJUSTED BUDGET 1972-73
$15,000 70,000 74,830 29,940 13,500 9,250 11,490 107,628 12,000 7,000 110,000 52,000 44,300 30,000 6,500 18,400 16,296 600 2,500 23,150 12,972 600 2,600 17,300 25,092 600 13,000 6,100
ADJUSTMENT ADJUSTED
1972-73 INCREASE BUDGET
DEPARTMENT BUDGET (DECREASE) 1972-73
Data Processing G-1 27,700 1,000 28,700
G-2 58,500 ( 7,524) 50,976
G-2a 2,500 ( 1,300) 1,200
G-3 10,000 ( 1,500) 8,500
G from B.of A.
-
( 25,000) ( 25,000)G-Pension 3,000 ( 1,500) 1,500
Magazine H-1 34,460 6,315 40,775
H-2 33,480 ( 4,140) 29,340
H-2a 1,200
-
1,200H-3 3,000 ( 800) 2,200
H-4 3,300 ( 300) 3,000
H-4a 32,000 7,500 39,500
H-5 3,000 ( 300) 2,700
H-17 500 400 900
H-80a 25,000 ( 6,000) 19,000
H-80b 12,500 ( 500) 12,000
H-80c 177,000 10,250 187,250
H-80d
-
1,000 1,000H-86b 6,420 108 6,528
H-86c 1,500 ( 300) 1,200
H-86f 1,500 1,000 2,500
H-86g 3,000 1,000 4-, 000
H-86h 5,000 ( 3,800) 1,200
H-86i 13,000 3,800 16,800
H-86j 20,000 5,475 25,475
H-86n 87,000 (15,000) 72,000
H-860 25,000 ( 2,000) 23,000
H-86p 1,000 600 1,600
Supplies I-1 20,280 1,000 21,280
I-2 81,610 4,730 86, 34-0
I-2a 5,000 ( 3,200) 1,800
I-Pension 6,500 ( 1,500) 5,000
Convention J-1 16,800 1,500 18,300
J-2 7,320 600 7,920
J-2a 2,500 ( 1,300) 1,200
Program K-1 45,740 2)660 48,400
Development K-2 48,265 2,603 50,868
Circle K M-1 10,600 ( 600) 10,000
M-2 11,283 ( 1,749) 9,534
M··2a 1,000 2,000 3,000
M-8 3,000 1,200 4,200
M-19 2,000 750 2,750
M-21
-
3,500 3,500M-Reimbursement (25,000) ( 4, 700) ( 29,700)
DEPARTMENT
Key Club N-1
N-2 N-2a N-Pension Bureau of Accounts P-1
P-2 P-2a P-Pension
P to Data Processing Publications
INCOME:
Magazine
Subscriptions Advertising
Q-1 Q-2
NET INCOME INCREASED Recommendation #4:
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1972-73 BUDGET
13,250 35,275 2,000 2,500 50,600 70,035 2,500 6,000 12,840 6,600
528,00 170,000
ADJUSTMENT INCREASE
(DECREASE) 1,550 2,237 ( 200) ( 400) ( 17,700) ( 33,003) (
4) 1,500) 25,000
510 228
3,000 20,000 15,070
ADJUSTED BUDGET 1972-73 14,800 37 ,_512
1,800 2,100 32,900 37,032 2,496 4,500 25,000 13.,350 6,828
531,000 190,000
The committee recommends that the budget adjustments listed above be made.
I move that recommendation LJ. be adopted.
The committee reviewed the detailed budget submitted by the Eastern Canada and the Caribbean District in connection with the additional expenses involved in maintain- ing the Caribbean division.
In line with previous Board action the connnittee is in agreement to draw a check at this time in the amount of $2,535.00 to reimburse the Eastern Canada and the Caribbean District for this expense as vouchered as of March 31,1973.
I move this report be received.
Respectfully submitted, ROY W. DAVIS
MAURICE GLADMAN
CHARLES M. ROBERTS, Chairman
SUMMARY STATEMENT OF INCOME AND EXPENSES PERIOD ENDED MAY 312 1973 & 1972
INCOME:
Dues-General
Dues-International Extension Charter Fees
Interest
Liability Insurance (Net) Processing Fees
Magazine Subscriptions Magazine Advertising
Gross Profit on Sale of Supplies Convention Registration Fees Convention Dues
Mailers Total Income EXPENSES:
Board, Council & Comm. Administration Executive
Office Management Public Relations
International Extension Field Service
Records & Data Processing
Program Development & Club Service Circle K
Key Clubs
Bureau of Accounts Publications
Magazine Supplies Convention Total Expenses
EXCESS OF INCOME OVER EXPENSES
1973
$ 851,907 87,468 15,649 5,695 12,J37 77,733 353,421 145,255 259,601 282,511 2, 64-1 4,4-43 2,098,661
172,683 106,550 104,462 38, 710 79,905 150,594 64,036 93, 4L!-3 27,991 27,622 ( 4,042)
55)760
Lir90, 101 229,017 104,318 1,741,~50
$
357,5111972
$ 809,939 86,333 14,300 5,009 61,318 354,443 139,853 233,800 178,759 30,258 4.607 1,918,619
176,487 95,751 97,476 33,811 72,395 127,422 73,809 85,925 21,768 38,200 14,265 65,531 497,094 210,776 85,022 1,695,732
$ 222,887
KIWANIS INTERNATIONAL WORLD SECRETARIAT FIFTH ANNUAL MEETING
GRAND HOTEL, OSLO, NORWAY Those in attendance: From Kiwanis International-Europe
Emile Blaimont, Chairman
Exhibit {f12
Georges Ade-Damilano, President Kiwanis International-Europe Roger Toje, President-elect Kiwanis International-Europe From Kiwanis International
Lorin J. Badskey, Vice-Chairman, President Kiwanis International Wes H. Bartlett, Immediate Past President Kiwanis International T. R. Johnson, Past President Kiwanis International
Staff
- - -
R. P. Merridew, Secretary
Frank McCabe, Director International Extension
All present agreed that this developed into a highly profitable meeting, with good participation by all present. The sessions resulted in such a wealth of material that it can only be covered in detail in the formal minutes, which will be compiled immediately following convention and copies sent to all members of the Board of Kiwanis International.
Highlights included recommendations as follows:
(1) Leaders of non-federated areas should be invited to attend future World Secre- tariat meetings as observers. The hope was also expressed that governors from federated areas could also be so invited.
(2) Kiwanis International-Europe should change its bylaws at the conclusion of the present rotation agreement (1975-76) to provide for election of officers by official delegates from individual clubs.
(3) The present use of the term "delegates" in referring to members of the Council of Founders and the future Boa.rd of Trustees should be discontinued to avoid confusion.
(4) That Kiwanis International and Kiwanis International-Europe should conduct a feasability study on the possibility of opening Africa as a Kiwanis continent.
(5) Clubs in formation should accomplish some form of community service before re- ceiving their official charters.
(6) That staff provide an agreed-upon list of specific countries to be considered as within the specific boundaries of Kiwanis International-Europe, dividing the list to show those which are open or closed.
(7) That a possible world-wide non-delegate meeting be thorou,.ghly investigated by staff to determine the feasability of holding such meetings every three years under the sponsorship of the Kiwanis International World Secretariat.
The 1973 meeting concluded on Thursday evening, June 14, at the Bristol Hotel where the World Secretariat hosted a gala dinner, honoring past and present officers of Kiwanis International-Europe.
Officers elected to serve for the next administrative year were Lorin J. Badskey, Chairman, and Roger Toje, Vice-Chairman. The next meeting of the Kiwanis Interna- tional World Secretariat will be held in Chicago in May of 1974, immediately following the Conference for Governors-elect, scheduled for May 1 and 2, 19740
REPORT OF THE COMMITTEE OF PAST PRESIDENTS
TO THE MEETING OF THE INTERNATIONAL BOARD OF TRUSTEES June 232 1973
Date of Committee Meeting: June 23, 1973 Place of Committee Meeting: Montreal, Quebec
Present: Fred G. McAlister, Q.C., Donald B. Rice, Walter J. L. Ray, H. Park Arnold, James M. Moler, Donald T. Forsythe, Albert J. Tully, I. Ro Witthuhn, Merle H. Tucker, Charles A. Swain, Edward B. Moylan,
Harold M. Heimbaugh, R. Glenn Reed, Jr., T. R. Johnson, Reed C. Culp, O. E. Peterson (Honorary Member)
Chairman - Robert F. Weber
Absent - J. 0. Tally, Jr., Edward C. Keefe, Don E. Engdahl Staff - Fay H. McDonald
Following the invocation by Past President Charles A. Swain the meeting was called to order by Chairman Robert F. Weber.
The absentees noted above were missed by all present and greetings are to be sent by the Chairman to each one not able to attend.
The Past Presidents Committee approved the report of its meeting on October 27, 1972, followed by the adoption of the previously mailed agenda.
The Pa.st Presidents approved the recommendation of the Board concerning the remodeling of the Past Presidents Room in the General Office. They recommended that Past Presidents Donald T. Forsythe and Charles A. Swain continue to work with the Board and Staff in the area of Archives and the display of historic trophies in the new trophy room.
The Past Presidents were extremely and deeply concerned with the thought of establishing a 31st Di.strict and it was the unanimous belief that the whole matter of present policy of Federation and Extension be re-evaluated. The
formation of Districts outside of U.S. and Canada. were originally to be
attached to (at the proper time of development) a Federation. The contemplated change will create some basic problems in organizational structure and £inane.es as well as operational procedures.
After hearing an excellent report from O. E. Peterson on the activities of the Kiwanis Foundation the Past Presidents suggested that the Foundation Board review the "Beat The President" Golf program i.n view of its low re.turn to the Foundation.
President Lorin Badskey brought greetings from the Board of Trustees and spoke on many matters of concern, i.e. Extension, dues increase, growth, club build- ing, "Career Award Program," "Panorama," Convention of Kiwanis International~
Europe, European Mission (Past President Merle Tucker also added his thoughts on this trip), the Mexican problem and the new world-wide training program.
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Treasurer Roy Davis and President-elect Dr. William Eagles brought additional information and answered many questions addressed to them from members of the Past Presidents Connnittee.
Past President Walter Ray brought to the attention of the Connnittee the lack of interest by various Districts in submitting candidates for the office of Trustee. He noted that this year there was no contest as everyone running will be elected.
Past President Ted R. Johnson gave a glowing report of the meeting of the International Secretariat held in Norway.
It was requested that the matter of the "Sunday Reception" where the Past Presidents were presented in special areas along with the candidates for office be placed on the agenda at the time of the meeting of Council.
There being no further business the meeting was adjourned.
Members of the Committee will be notified at an early date the time and place of the meeting during Council.
Respectfully submitted:
ROBERT F. WEBER, Chairman
REPORT OF KIWANIS INTERNATIONAL FOUNDATION TO
INTERNATIONAL BOARD OF TRUSTEES June 28~ 1973
I am going to make this as brief as I can, but I think there are some things you should be aware of. I am happy to tell you about them and tell you some of the things that took place at our Board Meeting during this convention.
As you know, our Director left us on May 31, just prior to this convention when the work load was the heaviest. Frank McCabe, who had worked with us for many years, was out of town but his secretary helped out. Our secretary in the Founda-
tion had to leave about a week before the convention because her father took sick, and so we were without any help prior to this convention. However, we did the best we could.
I reported to the Foundation Board that we have in our Birthday Gift fund thus far this year approximately $55,000. We think that is pretty goodo This is the sixth year for it. We started out in the first year with $7,000. We don't close this fund until July 31, and we hope to go over $55,000 by that time. This is our biggest source of income, and we believe this can be developed into something real big before very long.
We now have 458 Life Fellows. We added about 40 this past year. In the new Memo- rial Fellow plan, we have 41, adding 15 this year. We now have 63 on the Tablet of Honor, having added 7 during the past year. We are promoting all of these things in the best way we know how without stepping on anyone's toes and attempt- ing to force the issue.
At this convention we did pretty good financially. We received $5,000 from Bensen.
The Bremen, Indiana club gave us $1,000 the other day out of their Popcorn Fund.
They do pretty well with that, and they asked how they can get on the main program to present us with a check. I said if they get up to $5,000 I will submit it to the Board. Next year they will probably give us $5,000. We received a five hun- dred dollar contribution from the Northern Columbus, Ohio club for the Harry A.
Young Scholarship Fund. We have received about $700 this year for our Tribute Fund in one, two, five dollar contributions.
We have had our Golf Tournament nm-;r for a.bout five years. It has been a big dis- appointment. We had thought it would go over big. This year we are promoting individual club tournaments, but the Board has agreed that unless i t goes over this year we are going to forget about it. We have never lost money on it -- we have made as much as $3,000 at one time -- but the effort is terrific and the promotional expenses great.
At our Foundation Forum held on Monday afternoon, we had the biggest attendance we have ever had, and I had a hard time closing the meeting because the enthusiasm was so great. Every phase was covered, and I am sure that everyone got a great
deal out of it.
This year for the first time we had the District Coordinator Plan. We had District Coordinators suggested by the Governors for the districts, and we appointed them as the District Coordinators for the Kiwanis International Foundation. Out of the
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thirty districts, we had twenty-eight Coordinators; only two districts failed to give us a man to serve as Coordinator. The plan worked out very successfully.
We have been amazed by the work these Coordinators have done. We have asked them to serve for next year, and have had a response from the majority of them that they will serve next year.
On -Monday of this week we had a luncheon for District Foundation heads. The heads of fourteen of our District Foundations were there. It was a most enlightening luncheon, and a lot of good came from it. There was an exchange of ideas, and I saw these men making notes, and it created a better feeling between them.
Yesterday we had a meeting of our District Coordinators, and a lot of good ideas came out of that. I noted the ideas, and we will attempt to follow through on them.
We agreed at our Board Meeting to underwrite the preparatory cost of the TV series considered by the Board, and as the thing develops I am sure the Board will give consideration to a total appropriation for this series.
We appropriated $5,000 for the Circle K Film Strip being developed.
As you know the Board approved $12,000 for the Major Emphasis Program for the com- ing year.
We approved -- and this is one of the most important things -- the Guidelines for a major project for the Foundation as prepared by this Board. The members of our Board are satisfied with the Working Paper that was submitted, and we will proceed to govern ourselves accordingly and try to select a project in research and develop- ment that will lead in to the standards set up by this Board. You will learn more
about it as time goes on.
We had a Bylaw change that you may be interested in, We changed the Bylaws so that a man is elected for two years instead of three years and can serve for only two terms in any one series. That will give us the opportunity to turn the Board over and put men on we think should be on from time to time, and yet it will give us the opportunity to bring him back on again.
As to finances, our assets are now over one quarter of a million dollars. May I point out that we received two shares of Hudson Bay stock, willed to us by someone.
When I heard about it, I was so excited - •- I didn't know how much i t was worth - - but the two shares have been sold for $39.02.
Claude Ryder, after six years of service) went off the Board, and Gene Favell was elected the other day. Nick Swain was re-elected for two more years. They couldn't get anybody else to do it, so they re·~lected me as President for another year.
I could go into greater detail, but the rnen on this Board who serve as ex officio members of our Board know what we are doing, and I am sure they keep this Board advised as to our progress.
I do feel that we are well on our way. The Foundation has made progress during the last year. We are a small Foundation as compared to Rotary, who has eight and a half million dollars in assets, but if we stick with it we can get to be a real big Foundation, and I am looking forward to it.
HARRY S. HIMMEL President
Kiwanis International Foundation