Even as the body requires blood for oxygen and nutrients, so does a human organization depend on a steady flow of cash to support its essential activities. Financial operations, status, and plans are fundamental for ISPE's success in the present and future.

From ISPE's official statement of investment objectives: "The Society's primary purpose in accumulating net assets is to assure its ability to fund both operating deficits and any planned project expenditures. Consistent with these conservative purposes, the Society seeks to first, maintain security of principal and second, seek a rate of return at least at rates afforded by conservative instruments such as money market funds or certificates of deposit. The primary aim is to preserve capital; the objective is not to speculate, or make a high return."

Over the past couple of years, the Finance Committee has implemented a strategy of moving investments to no-load mutual funds with low expenses, particularly index funds. When Chair Judith Jones convened a meeting of the Finance Committee in Bordeaux on August 21, 2004, she began by noting that $161,000 invested has earned a return of 7.7% thus far in 2004. Approximately 42% of the funds are in mutual funds, with the remainder in money market funds.

Financial activity in the current fiscal year included investments in Public Relations and website upgrades and increases in sponsorship revenue and membership. The topic of most interest to the general membership may be ISPE's conversion to a new calendar and policy for dues payments. These changes will enable membership dues and registration for the annual meeting to be bundled together.

As the meeting closed, Frank May thanked Judith Jones on behalf of the committee for her outstanding effort as ISPE's Vice President for Finance.

Further details on ISPE's finances are available from the web site or by inquiry to Mark Epstein, the Executive Secretary (mepstein@paimgmt.com). The Finance Committee is important, and participation in its meetings (open to the membership) can be interesting and educational.

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