For
Consideration at the Annual Business Meeting
Phoenix, Arizona
August 21, 2001
Background
The Western Division has funded a variety of projects over many years and
this has recently become more formalized as a Grants Program. Though variable
over time, a grants funding level of $10,000 was approved at the annual business
meeting in Telluride, Colorado last July for the current budget cycle.
Division grants generally support workshop and symposia development, student
participation in meetings, AFS Section activities, promoting fisheries education
and awareness, and publication projects. Grant funds are distributed twice
a year, in July and December, after Division officers and Chapter Presidents
(the Division EXCOM) review proposals submitted by subunits, sections, or individuals
(complete application instructions are posted on the Division website at www.fisheries.org/wd).
Reviews are pending for requests totaling $8,000 of this year's available grant
funds.
Division income over the last
4 years has averaged just under $31,000, derived primarily from (in order of
decreasing contribution) AFS dues rebates, annual meeting proceeds, and interest
bearing accounts. Average spending over the same 4 years has been just
under $23,000. Division assets currently total about $100,800 maintained
in checking ($16,900), savings ($47,200) and 3 term-deposit accounts ($36,700).
While it is clearly possible to continue grants funding from annual revenue
streams, it also seems financially prudent to develop a long-term, self-sustaining,
funding mechanism for perpetuating the Division's Grant Program. A dedicated,
interest-generating fund, is an option that provides the capability for Grant
Program sustainability and growth while ultimately reducing or eliminating dependency
on annual budgets, thereby freeing annual income for other purposes.
After the 2000 annual meeting, an ad hoc Grants Funding Committee chaired
by Henry Booke was charged with developing a potential strategy to realize reasonable
investment returns from money allocated to the existing Grants Fund. Henry
has extensive personal investment experience, was instrumental in the development
and growth of the NE Divisions investment fund, and serves on the AFS Development
(investment) Committee. Other members include Ted Bjornn (AFS Development
Committee Chair), Roy Whaley (Colorado/Wyoming Chapter), and Division Secretary-Treasurer
Ed Cheslak.
The ad hoc Grants Funding Committee developed
a strategy to guide investment decisions, (the full text is available on request)
which reads in part:
“The
general approach to grant (financial) planning must be directed to sustain and
maintain the annual needs for the Division as well as build a strong base to
help meet needs required for growth of the grant fund…the EXCOM Finance Committee
should provide a mix of mutual funds and individual stocks as determined by
the Committee.
A Finance (Development)
Committee of capable experienced and interested members with some professional
assistance should follow the investment needs of the Division with quarterly
update oversight. The basic guideline for this committee must be that
no funds allocated can be spent into a debit condition. In fact, no project
should be allowed to go into debt, especially if spending targets are overseen
in a management-by-objective manner. Financial oversight should be built
into all processes of spending, earning and saving. If you don't have
it, don't spend it!”Based on the recommendations of the ad-hoc Committee and
Division officers, the following proposal is presented to the full membership
for their consideration.
Proposal
Establish a Western Division Grants Fund with an initial infusion
of $50,000 from Western Division cash reserves. Pursue a fund target of
$100,000 through investments, donations, periodic contributions from the Division,
or other means and begin using interest from the Grants Fund to support the
Grants Program upon attaining this target. Develop criteria for evaluating proposals
and identify areas of emphasis for using these grant funds.
Pending approval
of this proposal, the role of the ad hoc Grants Funding Committee will be expanded
to include investment oversight, growth and development, and quarterly review
of the Division Grants Fund. The Grants Funding Committee will be renamed
the Grants Funding and Investment Committee, to reflect this expanded role.
Because this is a long-term endeavor, the Grants Funding and Investment Committe
