Dear AHA Members,

A lot is happening within our organization that I want to share with you. Earlier this month your Executive Committee and Board of Directors met, covering an intensive agenda which included an update on the Sweepstakes program, Task Force reports, approval of the FY 2007 budget, a meeting with the Arabian Horse Youth Association Board of Directors, report on a highly successful public relations and marketing initiative at the Scottsdale show, and an update on the search for a new Executive Vice President. My bulletin to you will be lengthy as it includes several items from the Board meeting that are important for you to know. I will update you on these topics and several others.


In a previous bulletin I told you the Executive Committee would attempt to serve as the search team for a new Executive Vice President. At our meeting in Aurora this month, members of the Executive Committee realized the task of finding a highly qualified administrative leader was going to take a considerable amount of time and effort to do the job justice. It is imperative that we hire the very best person we can as our organization is at a crucial growth and improvement period. Consequently, we have hired a search firm, MRI Management Recruiters that is based in Colorado. With 1,000 offices in 35 countries, 4,500 professionals on staff, and a track record of placing 45,000 individuals annually, this firm will lead us in our search. This group has assured us of their capabilities, and, if we hire someone from their search and this does not result in a compatible match after nine months, they will head the search for a replacement at no additional cost. The plan was shared with the Board of Directors, and they agreed that this is the best path for us to follow. Our plan is to have someone in place by early to mid summer. In the interim, I will be spending more of my time in a leadership, hands-on role with the Association. We have a great many positive initiatives that we cannot afford to allow to stagnate over the next several months while the search is conducted. We have come too far to slide backwards. The job description for the EVP position is posted on our Association website. If you or someone you know is qualified, please submit a resume


Dean Meier, Chair of the International Arabian Breeders Sweepstakes Commission, updated the Board and Executive Committee on the Sweepstakes program. As you know, March 1 was the deadline to take advantage of an extended deadline for entries into the program, which included Original Entries. Typically, in a month, our Member Service Representatives receive 500 phone calls inquiring about Sweepstakes. On February 27 and 28 alone, they received 650 phone calls with 75% of these calls related to Sweepstakes. Dean reported that we received 207 Nominated Sire Entries, 14 Nominated Mare Entries, 25 Non-Arabian Nominated Sire Entries and 92 Original Entries. The only other times when we have seen higher numbers in stallion and mare nominations was during a special offering. While at the Aurora office, I checked the incoming mail that had come in just before deadline and there were stacks yet to be processed. I am pleased that you have embraced the new program and are investing in Sweepstakes. There still remains some confusion about how the points system works. Keep in mind when you sign up for the Sweepstakes point program, the points you earn at all levels count toward payback. We are still projecting that the payout will be somewhere around $9 to $10, which is a nice financial reward. If you earn 10 or more points you will recoup your original investment of $100 in the point program. Sweepstakes horses can sign up anytime all year long for the points program (you must sign up before earning point money). For the time being, if you want to sign up for the points program, go on line to the AHA site, print the sign up form, and fax it or mail it in. You may also contact a Member Service Representative and enroll in the points program via telephone. And, a bit of advice to clubs and show managers: Make sure your local show offers the selected Sweepstakes classes. I also want to take this opportunity to congratulate and welcome Richard (Dick) Reed as the newly elected member of the International Arabian Breeders Sweepstakes Commission.


Sweepstakes promotion figured heavily in our activities at our booth during this year's Scottsdale show. We were blessed with beautiful weather and high crowd numbers. This year, our team of staff members at the booth approached the show with a more aggressive public relations and marketing mindset. Last year, the Scottsdale show booth activity generated $7,000. This year, we brought in $156,000 for our efforts! This increase came from registrations, new members, and Sweepstakes entries. I am tremendously proud of our staff members who worked at the booth. We mingled more with the spectators and exhibitors, offering information about the many attractive features of belonging to the Arabian Horse Association and being involved in our programs. I think this successful effort is a clear indication of having a good product - our horses - and a great Association with wonderful programs for the members.


Jerry Wurtsmith, Chair of the Budget and Finance Committee, presented the Board with a 2007 fiscal year budget based on an income of $11,745,139, and expenditures pegged at $11,338,210. This will mean an increase of $406,929 improvement in assets. Jerry explained to Board members that developing a budget for the Association is difficult since our major income is based on our national shows. Over 50 percent of the show revenue comes from entries. This is a precarious situation, he told us, because entries can be impacted by any number of reasons. Last year, the Canadian Nationals suffered a hit with the VS problem in some states which prevented horses from crossing into Canada. Our largest income revenue and largest expenses comes from competition services, so anything that impacts our competitive events can seriously hamper our budget. The Budget and Finance Committee has a tedious and difficult task. I want to thank them for their efforts. The Board approved our 2007 budget. Treasurer Frank Galovic stated in his report that our total net income is $848,500, compared to $582,000 last year, for an improvement of over $266,500. Based on our position after ten months of the fiscal year, and looking back over the last two months of last fiscal year, Frank is projecting an operating net between $450,000 and $500.000. We continue to move toward improved assets versus losses. We must become consistent with our revenue in order to better manage our business and be able to plan our future.


While our time in Aurora was spent on serious Board matters, it is always refreshing to meet and talk with our youth leaders. At lunch on Saturday, 18 Youth Board members joined the adult Board, talking and visiting with each other. The youth were placed at tables with the adult directors. The feedback later from the adult directors was one of appreciation for the time to visit, and how impressed they were with our young leadership. The youth appreciated the time to visit with the adult directors as well. We have a great crew of youth directors. When I looked into the faces of these young people I realized I was looking at many of tomorrow's leaders in our Association. All of you are an important part of our Association's team.


I continue to applaud our staff for their creativity in looking at ways where we can apply best practices and operating in a business-like manner. As you will recall, we revised the way we have distributed our Handbooks. Now, you receive a copy if you request it, or can download it from our website. This new approach has enabled us to decrease expenditures from $40,000 to $10,000 in printing, and imagine the reduction in mailing costs. Another example of "thinking smarter" comes from the area of our national prize lists. Formerly, we mailed four prize lists. Now, we have included all four shows in one "omnibus." We'll be saving $30,000 on three mailings, which will be a tremendous help to our budget. A big thank you to staff for these initiatives! It is also of note to report that we continue to be more efficient in staff numbers. We now have 58 employees, down from 69 two years ago. This represents a savings in salaries and benefits and is a positive impact on our budget


Directors heard reports from staff and show commission chairs concerning our 2006 shows: The Youth Nationals will be in Albuquerque for years 2007-2008; the Canadian Nationals will remain in Regina for years 2007 and 2008. Allan Ehrlick, Vice Chair of the Canadian National Show Commission reported that the commission is optimistic about entry numbers this year. Instead of entire states where VS was reported being impacted (horses from those states could not travel to Canada), this year, it will be limited by county. This should help numbers. Lance Walters, Chair of the U.S. National Show Commission, reported on U.S. Nationals in Louisville. A "Walk of Memories" is planned as a special attraction for spectators and exhibitors and will lead the way to the new vendor area. Lance is optimistic that the nationals will be a safe and good show. Our various show commissions work hard to try to make the show experience positive for everyone involved.

• Horses Honored: Board members approved awards to several horses for their outstanding accomplishments. I want to mention their names and honor: The Ambassador Award goes to Proud Hjalluminator; Special Recognition Awards to BeyMoon Zela+ and Special Recognition Award to Russian Roulette+. Taking a break from our "business session" and reviewing the accomplishments of these horses reminded all of us of what motivates and drives us in our Arabian community. I speak for the entire Board in offering congratulations to the owners and riders of these outstanding representatives of our breed.
  
  
• Show Dates Rotation: Executive Committee member Howard Pike, who has been our point person on the USEF show dates rotation and the ensuing problems that resulted for many of our shows, reported that USEF plans to go back to the former system in 2009. In an effort to help ease this problem until then, the Board reviewed a proposed change in mileage restrictions. Instead of the existing 250-mile radius rule, the AHA Board recommends to USEF that the distance be shortened to 125 miles. This awaits action by USEF.
  
  
• Insurance Update: Consideration of an insurance program offered to members will be discussed at the May meeting of the Board. While it was originally planned for this session, staff will review proposals from two other insurance programs in the next 60 days. It is likely that whatever is offered, will have varying programs and options at different payment levels and will be an improvement for insurance opportunities and benefits to our members.
  
  
• Task Force Updates: We had preliminary updates from four of our task forces: National Events/Structure; Resolution 5-90 Overview; Committee Structure Re-Organization, and USEF Cooperative. These committees are hard at work at their assigned tasks and will have recommendations to the Board and possible proposed action for our Convention.
• Community Shows: We now have 40 clubs signed up for our Arabian Community Shows. These shows will be held all over the country and stretch across Canada. These first 40 shows will receive incentives for taking the initiative. Congratulations to these first 40 supporters of this exciting new show venue!

In giving you this report, I hope I instill in you the same optimism and enthusiasm that I and our Executive Committee and Board members possess. During this search for a new EVP, staff has risen to the occasion, working harder than ever to provide you the best service possible. I was very impressed with staff reports at our Board meeting. Our Executive Committee and our Board of Directors remain strong, unified and committed to staying the course as we embrace change and seek new ways to be the best breed organization possible. As your President I will continue to give AHA 100% of my time, and I am committed to do whatever is necessary to take AHA to the next level. I believe in order to do this I must remain as a full-time President; I believe you as members should insist on nothing less than a full-time President. Many of you are aware that I am not compensated. Not having an EVP in position is requiring additional time and management on my part. I sincerely appreciate the support and confidence of the AHA Board members who recently voted unanimously to allow me a temporary stipend to assist with my expenses during these demanding times. I want to remind you how important your support is: you are an integral part of the team. As always, I want you to know that you can contact me if you have any concerns or issues to discuss. I receive hundreds of e-mails on a daily basis and do my very best to respond or forward your request to the appropriate person.





Thank You and God Bless!