I want to thank: Finance Committee members Lisa Grossman, Barry Anton, Carol Goodheart, Katie Klehr, and Sandy Shullman; our Treasurer, Bonnie Markham; Jeannie Beeaff of the Central Office and our Executive Committee members for their assistance and guidance during this year as we have worked to improve the financial health of the Division and bring forward a balanced budget to support the important work of the Division during 2006.

A major task of the Finance Committee, collaboratively with the Treasurer, is the preparation of a preliminary budget for the Board of Directors to consider. That budget must be responsive to the needs of the Division’s members, address the goals and objectives of the Division and at the same time reflect responsible stewardship of the Division’s resources. The proposed budget is developed by reviewing and projecting income from dues, grants, investments, and revenue from products and services. Expenses are determined by fixed operational costs and requests for funds from committees and task forces.

A summary of the 2005-2006 Division Budget is included at the end of this column. You will see that the overall projected income is slightly higher but similar to the expected income for 2005. In the 2006 budget, some income categories have increased a little (Bulletin, CE, 42 Online advertising) and some are projected at slightly less (new member dues and ECP dues). However, under the able leadership of Lisa Grossman, we have an aggressive membership recruitment campaign under way and trust those results will show up in the dues column in future years. Additionally, we project an increase in our investment income.

The Division’s leadership has also been committed to wiser investment of our resources and making our capital work harder for us. We have invested our cash accounts in a number of highly liquid instruments designed to give us the highest overall yield and lowest risk. We also reassessed our current long-term investments with an eye on increasing yield while minimizing risk. While we could have chosen some instruments with potentially higher yield, it was the decision of the Finance Committee and Executive Committee that being good stewards of the Division’s assets, which have come primarily from member dues, dictated a somewhat conservative approach to investment. It is the Division’s current policy that only low risk instruments may be used for investment of Division funds. All assets not needed for operational expenses have been invested equally in the Vanguard Total Bond Market Index and the Vanguard Total Stock Market Index. In light of the importance of this Finance Committee charge, finance and investment experience in APA or other organizations will be an essential criterion for membership. Terms of members will be lengthened to provide the needed expertise and continuity to effectively carry out this charge.

On the expense side, our 2006 Budget is also similar to the 2005 Budget. No unusual expenditures are projected for 2006 and most continue at the 2005 level. There are a couple of new items for 2006. The Division, as part of President Comas-Diaz’s initiatives, will publish a bi-lingual informational brochure for use with the Latino(a) community. The brochure project, funded at $2500.00, is designed to help practitioners communicate more effectively with their Latino(a) clients, provide information about mental health services, and address issues of stigma. Also created is the new Task Force on Expanding the Business of Practice for Practitioners. This TF will address the expansion of psychology practice beyond the health care model. Members will include individuals with expertise in marketing and business and Early Career Psychologists. Tammy Martin-Causey, Ph.D. will serve as chair. There is also an increase in Executive Committee expenses to provide for an in-person Executive Committee meeting in the Fall. The Division has also committed to continue to support, as a sponsor, the National Multicultural Conference, a bi-annual meeting, at a level of $5000.00. The next conference is in 2007, but the contribution needs to be expended in 2006. Finally, a well-deserved salary increase has been approved for our very capable Executive Director, Jeanne Beeaff!

And on a personal note, I hope you will all join me in thanking Bonnie Markham for her untiring and dedicated service to Division 42 as its Treasurer of many years. Bonnie is “retiring” that position at the end of 2005. She has provided invaluable leadership in the management of the Division’s financial affairs. Her leadership is a very large part of the financial health of our Division. She leaves us in excellent financial health! Thank you, Bonnie! We look forward to your continued service to the Division as member-at-large on its Board. Dr. Stanley Graham will begin his term as Treasurer in January 2006. Welcome, Stanley!

I thank you for the opportunity to serve as your Finance Chair for the last two years. The Division’s leadership has been a joy to work with! You can be assured that they are all very committed to making our Division work for all of us. If you have questions, comments, or concerns about the 2006 Preliminary Budget that follows, please feel free to contact me at knordal@vicksburg.com.

Return to Top