AGA TOPICS Newsletter

From the National President

By: Samuel T. Mok, CGFM, CIA, CICA

January marks the midpoint of my term as AGA’s National President. I am only serving an 11-month term because of the PDC dates set years ago by the National Office staff. Given the contracted length of my term, my focus has always been on quality over quantity. As you will probably agree, good perfume usually comes in tiny bottles. 

These past five months as your president have been like watching a foreign art film on fast forward. I am finally getting accustomed to the accent, the nuances and the unfamiliar story setting. Still, I am occasionally surprised by the developments unfolding before my eyes. I am working on anticipating and adapting to these unexpected plot twists, rather than just trying to keep up with the "storyline."

Since September, I have raised many issues in this TOPICS column. I expressed my concern over the lack of a validated executive director succession plan, the need for enhanced internal control documentation for the National Office finance operation, the consequences of not formally institutionalizing the governance protocol between the elected National President and the executive director and his executive staff, and the clear demarcation of the responsibilities and accountability of the National President. Additionally, a number of Past National Presidents expressed concern over the National President nomination process, the role of the executive director in that process, and the appearance that Corporate Partner members are calling the shots at AGA conferences. I want to take this opportunity to submit to you a mid-term report on the status of these challenges.

1. Executive Director Succession Plan—I give myself a red on the development of an executive director succession plan. Understanding and addressing this issue has proven to be much more complicated than I originally anticipated. However, I expect to make good progress within the next three months with the continued help of our current executive director. I am committed to resolving this matter before I leave office in June.
    

2. Enhanced National Office Finance Operations Internal Control Documentation—I give myself a yellow on progress but a green to the Finance and Budget Committee for their work. I am watching this carefully as it may slip to a red on both fronts next month if anticipated progress is not made. I take comfort in knowing that the committee chair Thad Juszczak and the vice chair, National Treasurer-Elect Designate Mary Lechner, CGFM, are doing their best to push this along with the very professional support by the AGA’s CFO Cristina Barbudo.
    

3. The Governance Protocol—I give myself a green on governance protocol. I have organized a task force of highly competent and dedicated AGA members who have volunteered to work on this issue. The task force is chaired by John Radford, CGFM, state controller for Oregon. The members are Gwen Sykes, CGFM (CFO of Yale University), Jeff Hart, CGFM (AGA Past National President), Kelly Stefanko (City of Norfolk government) and Dan Christovich (former Washington, D.C. chapter president). I will add another member to this group in a month. I have asked John Radford to present an outline to the NEC during the February meeting and to have a final proposal ready for NBD approval this June. All members of this team have agreed to the schedule. I will report on their progress each month. 
    

4. The Responsibility and Accountability of the National President—I give myself a yellow on this subject. I have discovered that being the National President of AGA is somewhat like disco dancing. It is all free form and requires that the dancer be relatively uninhibited. I also found out quickly that my freedom to swing my arm ends where the nose of the executive director begins. The million-dollar question is: Where should my arm end and the nose of the executive director begin? I plan to have a proposal ready for the NEC/NBD by June. 
    

5. The Nomination Process and the Role of the National Executive Director in this Process—I give myself a bright green on this subject. The NEC has accepted the Nominating Committee's selection of Lisa Casias, deputy CFO, U.S. Department of Commerce, as National President-Elect Designate. I applaud Chairman Rick Fair, Immediate Past National President, and his committee for their wisdom and judgment in this decision. I am also happy to confirm that the current nominating procedure for national officers (including the president) is independent and impartial. In particular, I found no credible evidence that the executive director was exerting undue influence over this process. No one came forward with any evidence to the contrary, despite my request for such information. I now consider this matter dealt with and closed.
    

6. Corporate Partner members' role in influencing AGA national conferences—I give myself a bright green on this matter. While I regret to report that there was some basis for concern in this area, I can now say with confidence that this problem has been dealt with and resolved. I also want to emphasize that the situation was not due to any malicious or wayward behavior on the part of any CPAG members. My decision to examine this matter was the result of concerns expressed to me by a number of Past National Presidents.
   
   The first of the three principal problems was with the designation of technical committee members, assigned to organize and manage these conferences. In the past, there has been no published or established procedure to ensure the transparency of the committee appointment process, or to guarantee diversity of representation on these committees. The volunteer system was not effective, because it resulted in an over-representation of CPAG members. CPAG members generally have more latitude and incentive to volunteer for these positions than government employees.
   
   Second, government employees who sit on conference technical committees have a significantly lower rate of participation at committee meetings than CPAG members. This again may be due to the fact that CPAG members do not have to use personal leave time in order to fulfill committee obligations. Third, in the past, co chairs have not been empowered explicitly to make final approving decisions or veto technical committee recommendations. I have changed the rules to address all three issues. The February NLC and the June PDC are operating under the new rules I established. I believe compliance to these new rules will put those past concerns to rest once and for all. NLC planning has been completed, and the conference co-chairs have made all final decisions on sessions, topics, speakers and moderators.
    

7. The AGA Radio Program—I give myself, Dr. Van Daniker and his staff, a green on this front. The program was done on time, was within budget, and there was no "blow back" from any quarters after the first show was aired. We are now working on the second show. Any member who wishes to listen to the first show should contact the AGA National Office. I am currently working with Dr. Van Daniker and the Radio Program Task Force to develop rational metrics for measuring the success of this endeavor. We want to ensure that the project accomplishes its intended objectives, and that AGA funds are being used effectively.
    

8. The Executive Director Evaluation Plan—I give Dr. Van Daniker a green on this front and myself a yellow. He submitted a proposal to me earlier this month, and we will finalize these plans by the end of January.

During the remaining months of my term, I plan to continue work on the above issues, and will try my best to bring all of them to a positive resolution by June. I will also take on two more items starting this month: The creation of meaningful performance metrics for AGA programs, and the utilization of a business case approach to assist NEC (especially the finance and budget committee) in approving major AGA funding/budget initiatives in the future.

AGA is a membership organization, and our members deserve a voice in the decision-making process. I urge each of you to take a heightened interest in how your elected national leaders are serving you and how your money is being spent. As dues-paying members of this 501(c)(3) organization, you have the legal right to request copies of the organization's financial records and to question expenses incurred. The financial statements are available to all AGA members from the National Office. Please take time to understand how your money is being spent and feel free to direct any questions to either the executive director or the National Treasurer, who serves as chair of the Finance and Budget Committee.

If you remain silent, you have given us your consent to conduct business as we see fit, and you will become an accomplice to our mistakes. To keep AGA strong and prosperous, it is your responsibility to ask questions, be vocal and challenge decisions. As always, PLEASE do so in a civil and professional way.

Happy New Year!

Sam