ASHI takes pride in financial accomplishments
With the 2004-2005 fiscal year behind us, we can look back on it with pride. We’ve accomplished a great deal and have ended the year with a significant surplus. We plan to use this surplus to help rebuild our reserves, strengthen ASHI and continue to provide the products, services and information you desire.
Again this year, we supported the chapters. We’ve paid out more than $200,000 to our chapters to help them promote you and your business. Over the past two years, ASHI sent $500,000 back to the chapters. The Board now feels the chapters can continue their efforts on their own.
This has been a busy year for ASHI financially. We continue to keep a close eye on expenses so that we can provide the programs and services you want, while keeping dues increases to a minimum. During the year, we negotiated discounts with several of our primary vendors, which has lowered costs in some areas. A prime example is UPS. We successfully negotiated a 5 percent discount by revamping our shipping operations. In addition, we now have the capability of tracking shipments electronically and can troubleshoot problems.
In the early part of the year, ASHI was able to repay a loan of $350,000. We used funds that were collateralizing the loan; thereby saving ASHI more than $20,000 in interest expense. We all understand that health insurance costs are climbing dramatically and impact all organizations. ASHI has been no exception, but this year, we bid the coverage and managed to eliminate a proposed increase in rates.
In addition to closely watching expenses, we’ve also focused our attention on increasing non-dues revenue. While we successfully negotiated reduced fees from our credit card processing vendor, at the same time, we negotiated a significant increase in our royalties from the credit card acceptance program. Early in the year, we established a Money Market account allowing ASHI to increase its interest income. Excess funds in the bank accounts are now swept into the Money Market account to maximize their return. Staff monitors the accounts to ensure our funds are working for us.
Also, the Board negotiated the final sale of the National Home Inspector Exam to the Examination Board of Professional Home Inspectors (EBPHI). The agreement calls for EBPHI to pay $200,000, plus interest, over five years starting in 2006. In the early years of forming EBPHI, ASHI covered the expenses and recorded a receivable on its books. EBPHI repaid that loan this year.
The ASHI staff continues to reduce expenses and look for new sources of non-dues revenue. This allowed your ASHI Board to adopt a budget for 2005-2006 that reduces dues in almost every membership category. The adopted budget continues our cost-saving measures and calls for a surplus again this year.
I have enjoyed being your treasurer for the past two years. I thank you for your support in electing me treasurer. Truly, it has been a rewarding experience, and I’ve grown in the process. I’m also pleased with your society’s accomplishments these past years. We have done some great things and I am proud to be part of it. Thank you.