Council of Representatives Approved Minutes: August 6 & 10, 2003

I. MINUTES OF MEETING

A.(1) Council voted to approve the minutes of the February 14-16, 2003, Council of Representatives meeting.

II. ELECTIONS, AWARDS, MEMBERSHIP AND HUMAN RESOURCES

A.(2) Council voted to approve increasing the fees for Student Affiliates in community colleges from $25 to $27 and affording Student Affiliates in community colleges 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.(3) Council voted to elect 142 members to initial Fellow status, on the nomination of the indicated divisions and on the recommendation of the Membership Committee and the Board of Directors.

C.(29) Council received an update on the business pending item “New Criteria for Dues Exempt Status.”

D.(30) Council received an update on the business pending item “Eligibility for Service on the Board of Directors.”

E.(52) Council received an update on the new-business-in-progress item “Information for Potential APA Presidential Candidates.”

F.(53) Council received an update on the new-business-in-progress item “Orientation for APA Presidents.”

III. ETHICS

No items.

IV. BOARD OF DIRECTORS

A.(4) Council voted to 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.(5) Council voted to 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.(6) Council voted to 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.(7) Council voted to approve the following motion regarding the 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.(31) Council received an update on the business pending item “Enhancing Future of APA.”

F.(32) Council received an update on the business pending item “More Proactive Involvement with Other Disciplines, Organizations, Media and Political Bodies.”

G.(33) Council received an update on the business pending item “Accountability to Vision and Goals.”

H.(34) Council received an update on the business pending item “Institutionalizing Change.”

I.(44A) Council voted to approve, in principle, the Final Report of the Presidential Task Force on Governance. Council requested that specific recommendations of the report come back to Council for action in February 2004.

J. Council received as information the Litigation Report, from Nathalie F.P. Gilfoyle, APA General Counsel.

V. DIVISIONS AND STATE AND PROVINCIAL ASSOCIATIONS

A.(8) Council voted to 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.

B. (9) Council voted to approve Division 14 promulgating the Principles for the Validation and Use of Personnel Selection Procedures, 4th Edition as APA policy. Council requested that the “Guidelines on Multicultural Education, Training, Research, Practice an Organizational Change for Psychologists” be included as a reference to the principles.

VI. ORGANIZATION OF THE APA

A.(10) Council voted to approve amending Article XX of the APA Bylaws as follows (bracketed material to be deleted):

ARTICLE XX

Amendments

1. The Association, by mail vote of the voting Members on the official rolls of the Association at the time of mailing, may adopt such Bylaws or amendments to Bylaws as are consistent with the Association's Certificate of Incorporation and are deemed necessary for the management of the affairs of the Association.

2. Amendments may be proposed (a) by Council, (b) by the Policy and Planning Board, (c) by the Board of Directors when approved by Council by a majority vote, or (d) by petition signed by four percent or more of the Members of the Association. A copy of each amendment proposed, with space appropriate for voting and such explanations of the amendments [are as deemed necessary], shall be mailed to the last recorded address of each Fellow, Member, and voting Associate member. [Pro and con statements shall accompany amendments unless two-thirds of the representatives present and voting consider such statements to be unnecessary.] Forty-five days after the date of mailing, the poll shall be closed and the votes counted by the Election Committee, which shall certify the result to Council at its next meeting, at which time the amendment, if passed by two-thirds of all the Members voting, shall take effect.

Council voted to approve amending the APA Association Rules as follows (bracketed material to be deleted; underlined material to be added):

220. AMENDING APA BYLAWS

220-1.1. In the event that any change in the APA Bylaws is proposed, the text of such change shall be published in the APA Monitor on Psychology at least one month before the ballot is mailed and preferably long enough in advance to permit comment.

220-1.2 [Guidelines for preparing pro and con statements that accompany ballots for proposed APA Bylaw amendments follow: (a) pro and con statements shall be written unless two-thirds of the voting Council members consider such statements unnecessary; (b) except when instructed by Council to the contrary, each pro and con statement shall be limited to 200 words; (c) the groups and authors preparing the statements shall be identified on the statement; (d) Council or its designee shall determine who is to prepare the statements; and (e) pro and con statements shall be exchanged between the respective author(s). Rebuttal statements may be written (and so identified) by the respective original authors if they choose to do so. Rebuttals may not exceed 200 words.]

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.

The Election Committee shall be responsible for any editorial and substantive revisions that are necessary to ensure factual accuracy and fair representation of the issue. [The Committee will consult with authors about any recommended changes. The final decision about the pro and con statements shall rest with the original author(s).]

[The preceding guidelines should not be construed as limiting the prerogative of the Policy and Planning Board to prepare pro and con statements on APA Bylaws amendments, in accordance with guideline (c) (identification of authors' statements).]

Council voted to forward pro/con statements with the Bylaw amendment ballot.

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

B.(11) Council voted to 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.(35) Council received an update on the business pending item “Better Articulation Between the Council of Representatives and Its Board and Committee.”

D.(45) Council received as information preliminary plans for the 2004 P&P 5-Year Report.

E.(46) Council was informed of plans for incorporating new policies into the APA Policy Manual.

VII. PUBLICATIONS AND COMMUNICATIONS

A.(12) Council voted to 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.

VIII. CONVENTION AFFAIRS

No items.

IX. EDUCATIONAL AFFAIRS

A.(13) Council voted to approve the continued recognition of Clinical Neuropsychology as a specialty in professional psychology.

B.(14) Council voted to approve the withdrawal of Council new business item #58K: Impact of School Size on Psychological Well-Being and Educational Achievement of Students.

C.(36) Council received an update on the business pending item “Greater Autonomy for Committee on Accreditation.”

D.(37) Council received an update on the business pending item “Future Composition of the Committee on Accreditation.”

E.(38) Council received an update on the business pending item “Guidelines for Education and Training at the Doctoral and Post-Doctoral Level in Consulting Psychology – Organizational Psychology.”

F.(39) Council received an update on the business pending item “Statement on Specialization in Professional Psychology.”

G.(54) Council received an update on the new-business-in-progress item “Rescinding Certain Actions Taken by Council in August 1999.”

X. PROFESSIONAL AFFAIRS

A.(15) Council voted to reject the following main motion of Council 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.

B.(16) Council voted to adopt the “Guidelines for Psychological Practice with Older Adults.”

C.(17) Council voted to reject the following main motion of Council 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.

D.(18) Council voted to reject the following main motion of Council 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.

E.(19) Council voted to reject the following main motion of Council new business item #30B:

Council directs the President to contact those health care provider groups that collectivelysupport 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.

F.(20) Council voted to approve the withdrawal of the item “Increasing the Number of APA Members of a State/Provincial/Territorial Association Required for Affiliate Status.”

G.(21) Council voted to approve the following revision to the Bylaws of the Practice Organization (bracketed material to be deleted; underlined material to be added):

Article VI

Board of Directors

Section 2. Composition, Tenure and Qualifications. [The number of Directors shall be twelve.] The Board of Directors shall constitute the same individuals who serve on the Board of Directors of the American Psychological Association from time to time. Any Director who serves as a non-voting member ofthe Board of the American Psychological Association shall also serve as a non-votingmember of the Board of the Corporation. If an individual serving on the Board of the American Psychological Association cannot, for any reason, sit on the Board of the Corporation, that individual may attend Board meetings as an observer and, if such individual is an officer of the American Psychological Association, the other members of the Board of Directors of the Corporation shall select another individual, from among the Board members, to serve in the vacant officer position.

H.(22) Russ Newman, PhD, JD, Executive Director for Professional Practice, provided Council with a Triennial Report on the APA Public Education Campaign Program Assessment.

I.(28C) A new business item “Public's Need to Recognize and Identify Specialty Practitioners who are Board Certified by a Certifying Board which Meets the Guidelines Promulgated by the Profession/APA” was referred to the Board of Professional Affairs (BPA), the Committee for the Advancement of Professional Practice (CAPP), the Committee on Legal Issues (COLI), the Commission for the Recognition of Specialties and Proficiencies in Professional Psychology (CRSPPP) and the Board of Educational Affairs (BEA).

J.(28F) A new business item “Public Education Campaign – Psychology is an Emperically-Based Profession” was referred to CAPP, the Board for the Advancement of Psychology in the Public Interest (BAPPI), BEA and the Board of Scientific Affairs (BSA).

K.(28G) A new business item “Public Education Campaign Assessment” was referred to CAPP, BAPPI, BEA and BSA.

L.(55) Council received an update on the new-business-in-progress item “Guidelines for Psychological Practice with Girls and Women.”

M. In executive session, Council voted to withdraw the item “Board Certification for Psychologists in Applied Fields of Specialization in Professional Psychology.”

XI. SCIENTIFIC AFFAIRS

A.(40) Council received an update on the business pending item “Scientific Expertise Categories on the APA Database.”

B.(41) Council received an update on the business pending item “Increase Media Staff in Science Writing.”

C.(42) Council received an update on the business pending item “Increase Science Directorate Public Policy Staff.”

D.(43) Council received an update on the business pending item “Develop Mechanisms to Identify Critical Issues that Need to be Informed by Research.”

E.(47) Council received information on the progress of the Academic Enhancement Initiative that was approved by Council in August 2000.

XII. PUBLIC INTEREST

A.(23) Council voted to receive the Final Report of the international meeting, Sexual Orientation and Mental Health: Toward Global Perspectives on Practice and Psychology.

B.(27) A new business item “Establishing a New Committee within the Public Interest Directorate, the Committee on Socioeconomic Status” was referred to BAPPI, P&P, BPA and BSA.

C.(28A) A new business item “Council Representation for Ethnic Minority Psychological Associations” was referred to CSFC, BAPPI, the Committee on Division/APA Relations, the Committee on Legal Issues (COLI) and P&P.

D.(28B) A new business item “Proposal for a Task Force on Gender Identity, Gender Variance and Intersex Conditions” was referred to BAPPI, BPA, BSA, the Committee on Lesbian, Gay and Bisexual Concerns and the Committee on Women in Psychology.

E.(28D) A new business item “APA Endorsement of Children's Products (Marketing Peace of Mind to Parents)” was referred to BAPPI, BEA, CAPP, COLI, the Committee on Children, Youth and Families, the Finance Committee and the Ethics Committee.

F.(44) Council received an update on the business pending item “Rural Children's Mental Health Services.”

G.(56) Council received an update on the new-business-in-progress item “APA Ban on Department of Defense (DoD) Advertising in APA Publications.”

H.(57) Council received an update on the new-business-in-progress item “Discrimination Against Lesbian, Gay and Bisexual Military Personnel.”

I.(58) Council received an update on the new-business-in-progress item “Proposed Resolution on Families of Incarcerated Offenders.”

J.(59) Council received an update on the new-business-in-progress item “Diversity in Course Content, Publications and Training Programs.”

XIII. ETHNIC MINORITY AFFAIRS

A. Council received an update regarding the Commission on Ethnic Minority Recruitment, Retention and Training in Psychology's Implementation Grant Funds.

B. James Jones, PhD, Director, Affirmative Action/Minority Fellowship Program, presented Council with the Equal Employment Opportunity/Affirmative Action Report.

XIV. INTERNATIONAL AFFAIRS

A.(60) Council received an update on the new-business-in-progress item “Resolution on Culture and Gender Awareness in International Psychology.”

XV. CENTRAL OFFICE

A. Council received as information a news release regarding The World Resources Institute and Think Energy, Inc., applauding APA and its property manager, Trammell Crow and Company, for the purchase of more than 20 million kilowatt hours of green power.

XVI. FINANCIAL AFFAIRS

A.(24) Council voted to approve 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. In addition, Council voted to reinstate the fall consolidated meetings in 2004 which are estimated at $300,000, resulting in a net surplus of $339,700.

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 voted to specifically approve a $6 dues increase from $236 to $242 and an additional $5 increase from $242 to $247 for the 2004 dues year.

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 voted to 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.(25) Council voted to approve the Net Worth Allocation Plan including the Financial Forecast for 2004-2006 as follows:

1. 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.

2. 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.

3. 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.]

4. 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.

5. 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.

C.(26) Council voted to 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.

D.(28E) A new business item “Funding of Leadership Training Conferences on a Yearly Basis” was referred to the Finance Committee, P&P, BEA, BPA, BSA and COLI.

E.(48) Council received an update on the refinancing of the APA properties following the “closing” of the tax-exempt portion of the debt on March 27, 2003.

F.(49) Council received as information the 2002 audited financial statements prepared by PricewaterhouseCoopers.

G.(50) Council received as information the draft minutes of the May 30 & 31, 2003, Finance Committee meeting.

H.(61) Council received an update on the new-business-in-progress item “Protection of Mortgage Reserve.”

XVII. COMMUNICATIONS CONCERNING OUTSIDE ORGANIZATIONS

A.(51) Council received an update regarding APA's efforts to facilitate relations with the American Bar Association.


On Wednesday morning, President Robert J. Sternberg, PhD, gave a presentation to Council on the topic “A Model for Developing Expert Leaders” and Chief Executive Officer Norman B. Anderson, PhD, presented his report to Council.