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Thursday, November 15, 2012

Budget & Finance Committee Report

Submitted by Marian Huffman, SASFAA Budget & Finance Committee Chair


The Budget and Finance Committee met in Nashville, Tennessee on October 24 - 25, 2012 and conducted the annual financial review of the SASFAA records for fiscal year July 1, 2011 through June 30, 2012.  The committee commends Nancy Garmroth, treasurer for an outstanding job of complying with the Association’s policies and procedures, for maintaining the records in excellent condition and in an orderly manner which was easy to follow and understand.  The treasurer’s attention to detail was noted on numerous occasions.  The committee commends the board for working within the framework of the approved budget.  The board is continuing to look for opportunities to minimize cost and to maximize the organization’s resources.


During the November 2012 Executive Board meeting, the board agreed to update and clarify the investment strategy of the organization.   The approved plan financial plan is to maintain 15% - 20% of total assets in the day-to-day operating funding.  The remaining assets will be divided between short and long term investments each will contain approximately 30% - 45%.  The short term investments are typically CDs with maturity dates less than 36 months.  SASFAA is currently using a Financial Advisor from Edward Jones to assist in securing CDs and Short Duration Bonds which yield a higher rate of return. Long-term investments have a maturity of greater than 36 months.  At this time SASFAA will continue to utilize NASFAA’s Charles Schwab investment strategy.  This allows SASFAA to benefit from the investment advisors secured by NASFAA.

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