Convention Report and Auction_2021.qxp_Layout 1 2/18/21 3:12 PM Page 2
53rd Annual Meeting and Convention Proceedings January 28 - 29, 2021 — Virtual
Finance By J.W. Brune, Treasurer Committee members: J.W. Brune, Tim Curran, Jim Ligon, Mike Forman, and Randy Moody Staff leads: Linda Kesler, CFO and Wade Shafer, EVP The Background of the Finance Committee: It shall consist of five members of the Board of Trustees of which no more than three can be currently sitting on the Executive Committee. The Finance Committee shall monitor the investment program of the association on a periodic basis. Review the income and expense reports monthly, prepare an annual operating budget and review proposed capital expenditures for approval or recommendation to the Board. Being stewards of the American Simmental Association memberships funds should always be taken as the most serious of responsibility. This committee and the Board of Trustees undertake sound financial decisions to move the Board forward now and into the future. In a cost comparison across cattle breeds association, the services provided to our membership is at or below average for the same processes. We want our membership to receive the best in services at a price point that is equitable for all. This has been a historic year for the ASA in many ways. Number one would be the sale of the remaining old property and building at One Simmental Way, Bozeman, MT. The original property was purchased after great discussion over regions of the country to best locate the ASA headquarters. Bozeman won this debate and 20 acres was purchased north of the city along the interstate highway. The Association’s Building Committee recommended the purchase for $90,000. The Board agreed and the
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Register / March 2021
money was borrowed at an interest rate of 6.5%. A wise decision in more ways than one, as the next year interest rates doubled and real estate values in the Bozeman area also doubled. The construction of the ASA headquarters (building) was next and by July of 1974 the building was completed at a cost of $281,000. Dr. Bob Hough shares in the book Simmental’s American Journey, “The Swiss styled building was a showplace of business for the American Simmental Association.” Today we have reaped the rewards of our founding members. We have a new building on a property with great potential value. All paid for by ASA members. The original property was sold for $4,500,000 this fiscal year. The proceeds were invested in our Vanguard investment accounts in a monthly staggered insertion schedule. To help our membership navigate through COVID-19, a membership relief allocation of 10% reduction in THE, registration and transfer fees for members in fiscal year 2021 was approved. The fiscal year 2020 is from July 1, 2019 to June 30, 2020. The income was $5,153,080, and the expenses were $4,776,019, for a net of $377,061 realized gain. ASA’s total assets on June 20, 2020, were $17,297,470 for the end of fiscal year 2020. Our position is strong financially due to acceptance of our breed in the beef industry. The membership has a lot to be thankful for as Simmental and Simbrah genetics are on the march across the country. Mr. Chairman and ASA members, this concludes this report from the Finance Committee. I ask that this report be accepted in the minutes of the 53rd Annual Meeting. (Continued on page 32)