Report of the OAH Treasurer

Gale E. Peterson

The most significant developments in the OAH's financial picture during 2001 are not readily observed in the schedules printed on this page. First, the Adam's Mark Hotel's decision to drop its lawsuit against the OAH arising from the April 2000 annual meeting in St. Louis removes a potentially serious item from the ledger. To prepare for a trial and possible judgment, the manager of the OAH's investments was asked to keep $130,000 in cash or short-term money market funds that could be quickly accessed. Upon the settlement of this issue late in 2001, the fund manager was released from this obligation. Except for a loan of $15,000 from the endowment fund in 2000 (that is now budgeted for repayment in fiscal 2002), this puts the Adam's Mark issue behind the association.

Second, during the course of the year, the board took several steps to plan a capital campaign in anticipation of the Organization's one hundredth anniversary in 2007. In addition to several special projects for which funds would be solicited, the principal objective of such an effort would be to add significantly to the endowment fund. The board agreed to pay the costs of this preparatory work from the endowment fund itself, and these expenses will appear in the report for the fiscal year ending 30 June 2002.

In fiscal 2001, the OAH once again incurred a modest deficit amounting to about $22,000, or about 1.5 percent of its $1.55 million budget. While in and of itself this is not a serious shortfall, it is part of a general tendency for the OAH to aggressively budget anticipated income in order to justify the expenses the board and staff believe necessary to support the programs it must provide. When income falls short of expectations, a deficit results. This pattern underscores how important it will be to succeed with the capital campaign now being planned.

There are a few innovations in the report on receipts and disbursements printed on this page. This year the report shows the amount transferred from the Fund for American History to support special projects approved by the board. It also includes income and expenses resulting from restricted grants and collaborative projects. In recent years, the OAH has developed a strong relationship with the National Park Service for conducting theme studies and planning conferences where the OAH staff handles arrangements and for which it receives a modest management fee.

A more significant innovation will be apparent next year, as the office is making a transition from the cash basis to accrual accounting. This will alter the appearance of several of the auditor's reports, but will also provide both the staff and the Organization's members a more complete picture of its financial position.