Board of Directors Approved Minutes: June 6-8, 2003

Present: Robert J. Sternberg, PhD; Diane F. Halpern, PhD; Philip G. Zimbardo, PhD; Ronald F. Levant, EdD; Gerald P. Koocher, PhD; Norman B. Anderson, PhD; Barry S. Anton, PhD; Charles L. Brewer, PhD; Paul L. Craig, PhD; Carol D. Goodheart, EdD; Katherine C. Nordal, PhD; J. Bruce Overmier, PhD; Chris Lofits, MA (APAGS representative).

Absent: None.


I. MINUTES OF MEETING

A.(1) The Board voted to approve the minutes of the February 12 & 13, 2003, meeting of the Board of Directors.

II. ELECTIONS, AWARDS, MEMBERSHIP AND HUMAN RESOURCES

A.(2) The Board voted to recommend that Council approve increasing the fees for Student Affiliates in community colleges from $25 to $27 and affording community college Student Affiliates the same benefits as other undergraduate students, specifically adding receipt of the American Psychologist and a $10 journal credit to their benefits for membership.

B. In executive session, the Board approved the slates of nominees for APA standing and continuing boards and committees after receiving the report from the Nominations Subcommittee.

C. In executive session, the Board voted to approve the appointments of Frank C. Worrell, PhD, and Thomas Zentall, PhD, to the Committee on Division/APA Relations for terms starting January 1, 2004, and ending December 31, 2006.

D. At its April retreat meeting, the Board approved the following slate of candidates for APA Recording Secretary: James H. Bray, PhD, Janet R. Matthews, PhD, and Ruth Ullmann Paige, PhD.

III. ETHICS

A. In executive session, the Board took action on six ethics cases.

IV. BOARD OF DIRECTORS

A.(3) The Board voted to recommend that Council reject the following main motion of new business item # 27X:

Send information on the future--demographic, ecological, technological, etc. to COR members before Council meetings to help in future planning.

B.(4) The Board voted to recommend that Council reject the following main motion of new business item #27V:

Send information to COR members on ongoing basis. Encourage interaction and feedback via Email or Web.

C.(5) The Board voted to amend its Procedures for Submission of Amicus Curiae Briefs by adding the following as Paragraph 6 of the Procedures, and renumbering paragraph 6 of the correct Procedures as paragraph 7.

6. If a Division or other APA-related entity wishes to file an amicus curiae brief, consistent with Association Rule 100-1.9, its request will be processed under these Procedures. If the Board approves the request, the General Counsel will be responsible for reviewing and approving the brief as provided in paragraph 7. In the event General Counsel does not approve the brief, the matter will be referred to the Board. In the event that the Board decides that APA will file an amicus curiae brief in a case, a division or other APA-related entity may not file a separate brief in the same case.

If a division or other related entity is not able to file a brief under these circumstances, the Office of General Counsel will work with representatives of the division to obtain division input in the preparation of the brief to the extent possible.

The Board also voted to recommend that Council approve the following amendment to Association Rule 100-1.9 (underlined material to be added):

A division or other unit of the Association may participate in amicus briefs according to the procedures approved by the Board of Directors. In the event that the Board decides that APA will file an amicus curiae brief in a case, a division or other APA-related entity may not file a separate brief in the same case.

D.(6) The Board voted to approve the following policy regarding implications of APA endorsement/ approval of other organizations' resolutions or policies:

Council may "adopt," "support," or "endorse" documents of other organizations in principle. Endorsement of a statement, resolution, or policy of another organization does not mean that such a document has been adopted as APA policy, unless expressly so voted after appropriate review. APA policy takes precedent over endorsements of other organization's policy documents.

E. The Board approved the following dates and times for the August 2004 Board and Council meetings: The Board of Directors will meet on Tuesday, July 27, 9 a.m. to 3 p.m. and Friday, July 30, 8 a.m. to 10 a.m. The Council of Representatives will meet on Wednesday, July 28, 2 p.m. to 7 p.m. and Friday, July 30, 2 p.m. to 7 p.m.

F. President Sternberg provided the Board with an update on the Presidential Task Force on Governance.

G. The Board tested the personal response system from EduCue. The Board determined there are too many glitches in the system and therefore did not recommend that it be implemented as an electronic voting device for Council.

V. DIVISIONS AND STATE AND PROVINCIAL ASSOCIATIONS

A.(7) The Board voted to recommend that the Council of Representatives approves Division 14 promulgating the Principles for the Validation and Use of Personnel Selection Procedures, 4th Edition as APA policy.

B. In executive session, the Board discussed the item "5-Year Review of Divisions."

C. In executive session, the Board voted to accept the 2002 Division Annual Reports.

VI. ORGANIZATION OF THE APA

A.(8) The Board voted to recommend that Council reject the following main motion of new business item #25C:

That pro/con statements should be repackaged as a single statement that integrates the issues being voted on with a label such as "considerations" or "implications." All motions submitted to the membership should have such statements.

The Board also voted to recommend that Council reject the following substitute motion introduced by the Committee on Structure and Function of Council and the Policy and Planning Board:

That the main motion of a proposed Bylaw amendment presented to Council shall include an explanation of the amendment (up to 250 words) to be provided by the mover(s) of the Bylaw change. Such an explanation, once approved by Council, will be included with the Bylaw amendment ballot.

P&P and CSFC will review the practice of adding explanations to the Bylaw amendments and provide a report back to Council within three years.

B.(9) The Board voted to recommend that Council reject the following main motion of new business item #33B:

That an independent management consultant firm is hired to conduct a study of APA governance structure and function including structure and function of Council. The CEO in consultation with the Board of Directors will be empowered to select an appropriate consulting firm. Said firm will make recommendations to APA Council about a re-organization plan designed to increase efficiency and decrease cost of APA governance while preserving consistency with the mission of the organization.

C.(10) The Board discussed the item "Incorporating New Policies in the APA Policy Manual" and recommended that a statement be included in the "implementation plan" section Board and Council agenda items, noting if the main motion, once approved by Council, will be included in the policy manual.

D.(27) The Board received as information the preliminary plans for the 2004 Policy and Planning Board 5-Year Report.

VII. PUBLICATIONS AND COMMUNICATIONS

No items.

VIII. CONVENTION AFFAIRS

A. In executive session, the Board voted to affirm its earlier decision to hold the 2003 Convention in Toronto as planned and to approve the following statement to be sent to APA members and staff and posted on the APA website:

On June 6, the APA Board of Directors voted to affirm its earlier decision to hold the 2003 Convention in Toronto as planned - August 7 - 10. The Board reached its decision after it evaluated information available from the U.S. Centers for Disease Control and Prevention, (CDC), the World Health Organization (WHO), other public health experts, as well as results of surveys of members, convention presenters and APA staff.

The consensus of public health officials is that there is, at this time, no need to avoid travel to Toronto. We therefore look forward to an exciting and productive meeting. We also recognize, however, that some of our members preferred that we cancel the Toronto meeting. This perspective was given careful consideration by the Board of Directors. It was decided, however, that each member, presenter, exhibitor, or APA staff member should be allowed to make their own decision regarding attending the convention based upon their personal circumstances and health status. Information concerning SARS and Toronto can be found on the CDC, WHO and Health Canada web sites:

CDC: www.cdc.gov/ncidod/sars/index.htm
WHO: www.who.int/csr/sars/en/
Health Canada: www.hc-sc.gc.ca/english/protection/warnings/sars/

The Board of Directors and the Central Office staff will continue to monitor the situation. The health of our members, presenters, staff and exhibitors and by extension their families and communities will continue to be our priority. If between now and the start of the meeting, the WHO or the CDC issues a directive advising against travel to Toronto the Board will cancel the meeting.

IX. EDUCATIONAL AFFAIRS

A.(11) The Board voted to allocate $3,000 from its 2003 discretionary fund to support the hiring of an intern for the workforce analysis project.

B.(12) The item, "Proposed Changes to the Policy for the Recognition of Specialties and Practice Emphases (Proficiencies) in Professional Psychology" was withdrawn.

C.(12A) The Board voted to recommend that Council approve the continued recognition of Clinical Neuropsychology as a specialty in professional psychology.

D.(28) The Board received as information an update on recent activities of the Board of Directors' Task Force on Distance Education in Psychology.

E.(29) The Board received as information an update on the efforts of the Council of Credentialing Organizations in Professional Psychology.

F.(29A) The Board received as information an update on the work of the BEA Guidelines Working Group to develop the document, "Developing and Evaluating Standards and Guidelines Related to Education and Training in Psychology: Content, Procedures and Criteria."

X. PROFESSIONAL AFFAIRS

A.(13) The Board voted to recommend that Council approve amending the APA Association Rules as follows (bracketed material to be deleted; underlined material to be added) and direct the Policy and Planning Board to develop a mechanism for addressing the renewal or expiration of standards and guidelines to be brought back to Council for review and approval:

30-8. STANDARDS AND GUIDELINES

30-8.1 This rule applies to all standards and guidelines, as well as resolutions, endorsements or other statements that have the effect of a standard or guideline, that are proposed by any board, committee, division or subunit of a division, task force, work group, or other APA entity. As these terms are used in APA policy, "standards" include any criteria, protocols, or specifications for conduct, performance, services, or products in psychology or related areas, including recommended standards. Standards are considered to be mandatory and may be accompanied by an enforcement mechanism. "Guidelines" include pronouncements, statements, or declarations that suggest or recommend specific professional behavior, endeavor, or conduct for psychologists or for individuals or organizations that work with psychologists. In contrast to standards, guidelines are aspirational in intent.

The review procedures in this rule, which are established to protect APA, its governance groups and its members, apply to statements or actions that have the effect of a standard or guideline regardless of the title used. This rule also applies to standards or guidelines developed outside of APA that are proposed for adoption, endorsement, or approval by APA. This rule does not apply to those APA standards or guidelines for which Council has adopted specific procedures for review and approval, such as accreditation. If there is uncertainty about whether a proposed statement or action would constitute a standard or guideline that is covered by this rule, the sponsoring APA entity should consult with the APA Office of General Counsel to determine if the provisions of this rule apply.

30-8.2 When APA or any board, committee, division or subunit of a division, task force, working group or other APA entity works jointly with another organization on developing standards, guidelines or other statements that have the effect of standards or guidelines, the provisions of this rule will apply. If the APA entity working with another organization believes that it is not required to follow these review procedures it should confer with APA Office of General Counsel as soon as possible to determine whether the rule applies or an alternative approach such as a disclaimer or written clarification of APA's role should be used to address any risks.

30-8.3 Proposed standards or guidelines or other documents that have the effect of a standard or guideline should be sent to the APA Office of General Counsel for initial legal review regarding risk to the association or its members. The proposing entity shall suggest a period, not to exceed 10 years, for which the standard or guideline will be effective if it is approved along with a rationale for the proposed timeframe. The maximum period of effectiveness is appropriate for areas in which the knowledge base, practice patterns, and relevant legal and regulatory climate are stable. In most areas, an earlier expiration date (e.g., 5 years, 7 years) will be more appropriate.

Following initial legal review, a proposed new standard or guideline or an amendment to an existing standard or guideline shall be introduced as a new business item at Council and circulated to APA boards and committees for comment. At the same time, the proposing entity shall invite expert commentary and consultation from other appropriate groups or individuals and from all divisions and state and provincial psychological associations. The proposing entity shall respond to all commentary, seek additional legal review if appropriate and forward a revised document to all divisions and state and provincial psychological associations and groups that provided commentary. The revised draft version of standards and guidelines shall be forwarded to the Office of General Counsel in order to disseminate to the membership notice of a 90-day comment period and instructions for the receipt of comments. At the conclusion of the comment period, the proposing entity shall make any appropriate changes and respond to all comments received. The proposing entity shall provide the draft standards and guidelines along with copies of the comments and responses to comments to the Office of General Counsel for a second legal review and determination of whether further public comment is required.

After this legal review, the draft standard or guideline shall be forwarded to the Board of Directors with accompanying documentation regarding the comments received and response made to such comments. The Board of Directors shall review such documentation to determine if the standard or guideline is appropriate for the Association and if it poses risk to the Association or its members. If the Board of Directors determines that the proposed standard or guideline is not appropriate or that it poses undue risk to the Association or its members, it shall return the draft standard or guideline with commentary or with a request for additional revision and further expert or public comment.

When the Board of Directors determines that a standard or guideline is appropriate and does not present undue risk to the Association or its members, the Board shall recommend that the Council of Representatives approve the standard or guideline as APA policy.

In adopting an APA standard or guideline, Council shall establish the period during which the guideline will be in place as APA policy, which shall not exceed 10 years from the time of its approval.

30-8.4. Relevant boards, committees, divisions, affiliated SPPA's, Council members and any other relevant groups shall be provided notice no less than two years before a guideline will expire. Appropriate mechanisms for review, revision and action by Council to extend, amend or nullify guidelines before the expiration date shall accompany this notification.

30-8.5 When Council approves standards or guidelines, they will be adopted on behalf of the whole association. When an entity associated with APA wishes to sponsor and/or disseminate a published document that it does not intend to serve as standards or guidelines but which the public may reasonably construe as a set of standards or guidelines, the entity shall consult with APA legal counsel and any other interested boards, committees, divisions or groups to ensure that the language of the document does not imply a standard or guideline and to develop an appropriate statement to include in the document that will make it clear that the contents of the publication are not intended to set a standard or guideline for training, professional practice conduct or any other specialized form of the application of psychological knowledge and that the entity is not speaking on behalf of any other APA board, committee, division or group or on behalf of the APA.

100-1.5 [A division or other unit of the Association may release a position or policy statement on public policy matters in its own name. Such statements shall contain a disclaimer clause making it clear that the division or other unit is not speaking for the APA or for any other division or unit of the APA. Position or policy statements issued in the name of the APA require prior approval by Council.

When an APA division or one of its official sub-units sponsors and/or disseminates a published document that the division does not intend to be standards or guidelines but which the public may reasonably construe as a set of standards or guidelines for professional practice, the division shall make it clear that the contents of the publication are not intended to set a standard or guideline for practice and that the division or one of its sub-units is not speaking on behalf of any division or one of its sub-units or on behalf of the APA.

Except as otherwise provided in the APA Bylaws or Association Rules, a Division may, as part of its activities, develop standards or guidelines in its area of expertise. In the development of such standards or guidelines, the division shall inform all other divisions and state/provincial associations of guidelines in progress. Following initial legal review by the Executive Office, considering risk to the Association or its members, the Division shall invite expert commentary and consultation on them. The division shall respond to all commentary and forward a revised document to all groups which provided commentary. The revised draft version of division standards and guidelines shall be forwarded to the Executive Office for dissemination to the membership providing notice of a 90-day comment period and instructions for the receipt of comments. All draft standards and guidelines shall again be forwarded to the Executive Office for legal review.

After legal review, the draft standard or guideline shall be forwarded to the Board of Directors with accompanying documentation regarding the comments received and response made to such comments. The Board of Directors shall review such documentation to determine risk to the Association or its members; if the Board of Directors determines undue risk to the Association or its members, it shall return the draft standard or guideline to the Division with a request for additional revision and further expert commentary after which it shall be returned to the Board of Directors for its further review.

When the board of Directors determines no undue risk to the Association or its members, the Board of Directors shall recommend to the Council of Representatives that the Council of Representatives approve such determination. Upon Council of Representatives' approval, a Division may promulgate the standard or guideline as representative of Division policy, making it clear that the division or other unit is not speaking for the APA or for any other division or unit of APA. If the Division wishes the standard or guideline to represent APA policy, Council approval must be obtained.]

A division of the Association or a subunit of a division may release a position or policy statement on public policy matters in its field in its own name so long as the statement "complies with all relevant association bylaws, rules and current association policies" (APA Bylaws, Article VI.5) and does "not establish or enforce standards for ethics, accreditation, certification, or credentialing of specialty recognition" (APA Bylaws, Article VI .5). If the position or policy statement is intended to establish or could be construed by APA members or the public as establishing a standard or guideline for psychologists or for individuals or organizations that work with psychologists, the provisions of Association Rule 30-8 apply. Unless a division or division subunit obtains approval for a proposed statement on public policy issues from Council, such statements shall contain a disclaimer clause making it clear that the division or subunit is not speaking for the APA or for any other division or unit of the APA. Position or policy statements issued in the name of the APA require prior approval by Council.

When issuing statements on public policy matters in its field, a division or its subunit should contact the Division Services office, which will consult with APA legal counsel and executive directors, to determine if the proposed position or policy statement is in conflict with APA bylaws, rules or policies and to determine if Rule 30-8.applies. Provided there is no such conflict, the Division Services office, in consultation with APA legal counsel, will determine appropriate disclaimer language to accompany the position or policy statement.

For positions or policy statements to be presented by a division or its subunit in amicus curiae briefs, affidavits or other statements in legal proceedings, the provisions of Rule 100-1.9 apply.

The Board commended BPA and staff for their efforts that resulted in a document which serves as an exemplary model of clarity and coherence of policy.

B.(14) The Board voted to recommend that Council reject the following main motion of new business item #27D:

That Council approve of incorporating the following text in all policy documents that describe the processes and policies by which practice or treatment guidelines shall be approved for promulgation either by a division of the Association or by the Council on behalf of APA:

A unique situation or circumstance or the specific demands of a particular therapeutic relationship may render some of these guidelines unnecessary or even detrimental. Other circumstances may create a conflict between sections of these guidelines or between these guidelines and other guidelines or ethical imperatives. In such cases practitioners shall use their best professional judgment based on the information available to them at the time and guided by the standards of care in their community.

And that Council approve of directing the placement of the same text in the body of any particular practice or treatment guideline promulgated by a division of the Association or by the Association itself.

C.(15) The Board voted to recommend that Council adopt the "Guidelines for Psychological Practice with Older Adults" as APA policy.

D.(16) The Board voted to recommend that Council reject the following main motion of new business item #27L:

Council asks that each Division and SPPA generate a list of members with talent relevant to the media. In addition, each Division and SPPA will be requested to establish a media response network analogous to our advocacy networks, that could receive materials from APA and pass them on to members who would take them to media in their locales.

E.(17) The Board voted to recommend that Council reject the following main motion of new business item #27K:

Council directs the Board of Directors to develop a plan for creating a culture of giving for the Association and to report its plan back to the August meeting of Council.

The Board requested that a discussion of a "culture of giving" be added to the Board's October retreat agenda.

 

F.(18) The Board voted to recommend that Council reject the following main motion of new business item #30B:

Council directs the President to contact those health care provider groups that collectively support the wellness of the nation. The aim of the contact would be to invite the other Presidents to a summit conference for the purposes of establishing an interdisciplinary Task Force on Health Care Reform. The charge to the Task Force would be to link with relevant consumer groups a) to design a system of care for the nation that would meet the objectives set forth in the "issues" section of this agenda item, b) to identify the range of consultants (legal, political, actuarial, research, etc.) that the Task Force would require to meet its charge, and c) to develop a budget for doing the work and a mechanism for assessing the member organizations participation fees for funding its delegates and the necessary consultants. The President is to report back to the Council no later than August 1998 and at every C/R meeting thereafter progress in moving forward with this project.

G.(19) The Board voted to recommend that Council reject the following main motion of new business item #25A:

That Council approves forwarding to the membership for a vote the following amendment to Article XIII, Section 1, of the APA Bylaws (bracket material to be deleted; underlined material to be added):

A State and Provincial Psychological Association may, upon vote of Council, be affiliated with the American Psychological Association, provided that [ten] 50 or more of its members are members of the American Psychological Association. Continuing affiliation shall depend upon the State/Provincial Association's conforming to the purposes and stated policies of the Association. For the purposes of the organization, the District of Columbia, the territories and commonwealth of the United States, and the provinces of Canada, are to be regarded as the equivalent of states. In areas where there are relatively few psychologists, an organization extending beyond state boundaries may be affiliated, so long as it does not include an area in which there is a State/Provincial Association.

H.(30) The Board received information about the ongoing program assessment of the APA Public Education Campaign.

I. In executive session, the Board postponed to its August 2003 meeting, the item "Board Certification for Psychologists in Applied Fields of Specialization in Professional Psychology."

XI. SCIENTIFIC AFFAIRS

A.(31) The Board received information on the progress of the Academic Enhancement Initiative.

B. In executive session, the Board voted to establish a task force on APA awards. The mission of the task force is to 1) review current policies by which APA award selections are made; 2) consider whether more specific and formal policies should be established by which APA award selections may be reviewed before the award and/or, if necessary, after an award has been given; 3) bring to the Board and Council for possible adoption as APA policy any recommended changes to the current review policy for APA award selection.

C. At its March meeting, the Board voted to approve the Commentary on the Report of the President's Commission on Excellence in Special Education developed by APA's Committee on Psychological Tests and Assessment.

XII. PUBLIC INTEREST

A.(20) The Board discussed the item "APA Task Force on Advertising and Children" and recommended that boards and committees be asked to review the documents developed by the Task Force in a timely manner.

B.(21) The Board voted to recommend that Council receive the Final Report of the International meeting, Sexual Orientation and Mental Health: Toward Global Perspectives on Practice and Policy.

C.(22) The Board discussed the item "BAPPI's Concerns Regarding the Cancellation of the Consolidated Meetings." The Board agreed with BAPPI's concerns and noted that the Board intends to recommend the reinstitution of the fall consolidated meetings as soon as it is financially feasible.

XIII. ETHNIC MINORITY AFFAIRS

No items.

XIV. INTERNATIONAL AFFAIRS

No items.

XV. CENTRAL OFFICE

No items.

XVI. FINANCIAL AFFAIRS

A.(23) The Board voted to recommend that Council approve the following motion regarding the 2004 Preliminary Budget:

That the Council approves the 2004 Preliminary Budget in principle calling for a surplus of $639,700. This 2004 Preliminary Budget shall serve as the framework for the 2004 Final Budget that will be presented to Council for approval in February of 2004.

That, consistent with the action of Council in August 2000 to "institute the practice of increasing the APA dues annually by the amount linked to the consumer price index for all urban consumers (CPI-U)", Council specifically approve a $6 dues increase from $236 to $242 and an additional $5 increase from $242 to $247 for the 2004 dues year.

That, consistent with the action of Council August 2002 to institute "the practice of increasing the graduate student affiliate fees annually by an amount linked to the consumers price index for all urban consumers", Council specifically approve a $1 graduate student affiliate fee increase from $41 to $42 and that the revenues generated from this increase be added to the APAGS budget.

B.(23A) The Board voted to recommend that Council approve the establishment of and funding for a new APA electronic database, PsycEXTRA, covering material relevant to psychology that is not currently covered (or appropriate for coverage) in PsycINFO or PsycARTICLES.

C.(24) The Board voted to recommend that Council approve the Net Worth Allocation Plan including the Financial Forecast for 2004-2006 as follows:

  • The goal for attainment of net worth as stated in Association Rule 210-3 is reaffirmed; namely, that the Association strives to maintain a net worth equal to at least one year's operating budget with full recognition that 2002-2003 were transitional years and have temporarily interrupted the building of our net worth.

  • Consistent with accounting practices, conventional wisdom and comparable financial data from other organizations, the Association should not consider any portion of theoretical building equity toward attainment of the net worth goal mentioned in item 1 above.

  • Currently, rather than specifically set aside funds outside the normal budget process for development of programs deemed to be of high priority to the membership, the Association enthusiastically supports consideration of proposals (in the form of a business plan) for new revenue generating ideas. [Such proposals for new revenue generating ideas should be thoroughly detailed including all direct costs, indirect costs, and staff costs. Such proposals reviewed by the FC, the BOD and approved by the COR, will be funded out of ongoing revenues or out of the Association's net worth, as necessary, assuming that full consideration is also given to the impact of such funding on progress towards the Association's net worth goal mentioned in item 1 above.]

  • The specific financial forecast for 2004 - 2006 is as follows:

  1. Strive to attain a net worth goal equal to at least one year's operating budget consistent with Association Rule 210-3;

  2. Include $2.5M net cash flow from building operations in the operating budget as a regular source of revenue;

  3. Include funding in the operating budget for the Public Education Campaign and the Academic Enhancement Initiative through the forecast period (2004-2006);

  4. Restrict capital expenditures to no more than $8 million over the forecast period;

  5. Continue to reinvest realized gains/losses from our long-term portfolio activity;

  6. Begin in 2004 to treat all interest and dividends on long-term investments as non-operating activity and reinvest; and,

  7. Treat all real estate cash flow in excess of $2.5M annually from building operations as an increase to net worth and not available for operations or capital equipment, but rather as a reserve for financial investment and/or debt extinguishment.

  • Each year based on actual results and an analysis of our net worth, future financial forecasts and the net worth allocation plan will be adjusted accordingly.

Once the net worth goals are attained, any number of future actions can be taken including the long-term stabilization of dues; the long-term availability of funds for the development of programs deemed to be of high priority to the membership; further apportionment of building and investment proceeds toward operational expenses, etc.

D.(25) The Board voted to recommend that Council approve the establishment of the following real estate cash flow principles: that the Association be disciplined in its fiduciary role whereby the Association's operating budget be at least balanced annually (after consideration of the cash flow from buildings); that the principle be established for the use of the increased real estate cash flow whereby the real estate cash flow used to subsidize operations be no more than $2.5M annually; and, that the cash flow from the buildings in excess of the $2.5M be used to increase the Associations net worth by supplementing investments or reducing long-term debt by accelerated principal payments.

E.(26) The Board voted to accept the American Psychological Association Practice Organization and the APA Ten G LLC financial statements as of December 31, 2002, and the G Place Limited Partnership financial statements as of November 15, 2002.

F.(32) The Board was provided with a brief update on the refinancing of the APA properties following the "closing" of the tax-exempt portion of the debt on March 27, 2003.

XVII. COMMUNICATIONS CONCERNING OUTSIDE ORGANIZATIONS

A.(33) The Board received information regarding APA's efforts to facilitate relations with the American Bar Association.