The Foreign Service Journal, April 2023

THE FOREIGN SERVICE JOURNAL | APRIL 2023 43 AFSA NEWS 2022 AFSATreasurer’s Report AFSA continues its track record of keeping the orga- nization on a solid financial footing. AFSA’s reserves are sufficient to cover expenses beyond the six-month window recommended for nonprofits. We ended the 2022 fiscal year with a $50,000 surplus. At year’s end, we were honored to receive a clean audit—the highest possible standard for a nonprofit organization—for the 13th consecutive year. AFSA’s $6.7 million planned operating budget for calendar year 2023 is funded primarily frommembership dues and advertising rev- enue. AFSA’s membership base stood at approximately 16,450 as of year-end 2022. That number represents about 80 percent of active- duty employees across the foreign affairs agencies, plus approximately 25 percent of Foreign Service retirees. Dues increased by 8.5 percent for 2023 to match the third-quar- ter consumer price index. Advertising revenue continues to be a bright spot for AFSA, rising to $562,000 in 2022 (up from $550,000 in 2021). Of note, nearly $100,000 of that total comes from newer advertising opportunities, such as online ads and sponsorship of vari- ous AFSAmessaging vehicles. The Governing Board and the Finance Committee have revamped our invest- ment policy statement, last modified 20 years ago, and the board approved the new and awards to Foreign Service children. The fund annually withdraws 4.5 percent of its five-year average value to fund scholarships and partially underwrite the pro- gram’s operational expenses. The Fund for American Diplomacy balance was $515,000, down from $582,000. This fund sup- ports all AFSA’s outreach and public education efforts, including the speaker series, Road Scholar programs, the national high school essay contest, the AFSA awards and plaques programs, as well as both member and public events. The Sinclaire Fund provides funding for the association’s hard lan- guage awards, stemming from a generous bequest in the early 1980s. Its bal- ance at the end of 2022 was $482,000, down from $629,776. Finally, the Legal Defense Fund balance was $327,000 vice $342,000 at the end of 2021. The LDF supports AFSA members who are facing legal or regulatory issues that may affect the Foreign Service as a whole and in cases where AFSA does not possess the specific expertise needed for such cases. Market conditions took their toll on AFSA’s invest- ment portfolio in 2022, but the association’s overall financial strength remains excellent. As of this writing in February 2023, balances are already on the rise compared to the end of 2022, so we remain hopeful for significant market gains this year. As we look toward the remaining months of 2023, we will continue supporting our members in a variety of ways, including through scholarship funds, Sinclair language awards, bipartisan support for our legislative agenda, and other efforts. n policy at its February 2023 meeting. Based partially on suggestions from the associa- tion’s financial advisers and modifications by the Execu- tive Committee, it strikes a balance among equities, other investments, and a small per- centage in liquid assets. The policy sets minimum and max- imum targets for large cap, small-mid cap and interna- tional equities, fixed income, and cash. The updated policy is on the AFSAwebsite. To uphold good business practices, AFSA bid out the contracts for its tax and audit- ing services as well as invest- ment management services. There are no complaints about the current vendors, but this board and AFSA’s executive management agree that a regular fresh look at these relationships is a good practice that will stand the association in good stead. Drilling down into the finan- cial details, AFSA ended 2022 with reserves totaling $16.5 million in the following funds: The Operational Reserve , which supports regular operations, salaries, etc., stood at $3.8 million, vice $4.4 million at the end of 2021. In all cases, declines in fund balances can be almost exclusively attributed to the challenging investment envi- ronment in 2022. The Scholarship Fund stood at $10.8 million, down from $12.8 million in 2021. In 2022, AFSA provided $406,500 in scholarships 2022 AFSA-PAC Report Following the events of Jan. 6, 2021, the AFSA-PAC Committee paused contributions to members of Congress, like many PACs and other donors. The committee also decided not to contribute to any members who voted against certifying the 2020 election results. AFSA-PAC contributions resumed in early 2022. From the broader member contribution list approved in the beginning of the two-year cycle, the AFSA-PAC gave to eight members of Congress (four Democrats and four Republi- cans). An AFSA-PAC representative attended seven in-person events because of those contributions. The PAC contributed $1,000 to each of the following members: Sen. Lisa Murkowski (R-Alaska), Rep. Gregory Meeks (D-N.Y.), Rep. Ann Wagner (R-Mo.), Rep. Joaquin Castro (D-Texas), Rep. Gerry Con- nolly (D-Va.), Rep. Michael McCaul (R-Texas), Sen. Jim Risch (R-Idaho), and Sen. Chris Van Hollen (D-Md.). In a quiet fundraising year, the PAC collected $5,250 in donations in 2022. The fund balance stood at $7,000 at the end of Fiscal Year 2022. n