As you are aware, we have established four cornerstones to work toward in making our Association the best that it can be: Breed Growth, Financial Responsibility, Communications, and Organizational Efficiency. I am confident we are doing a good job of keeping you informed and the communication channels open. From a financial standpoint, we are doing well and for the first time in many years, have funds to address capital improvements. Breed Growth is an area that is being addressed by initiating new approaches to improve the numbers of registrations and transfers. We know we have to work harder here. We've made improvements within our administrative structure at AHA, improving organizational efficiency.

Now, I believe it is time to take our Organizational Efficiency cornerstone to a new level and want to tell you what is happening in this important cornerstone. Over the two years that I have been president, I have become increasingly aware that our governance structure needs improvement. Last year, I tasked Executive Vice President, Gary Zimmerman, with researching and selecting a professional group that could provide guidance in examining our governance structure. Consequently, Charney & Associates, a highly respected firm, was retained. Last fall, the Charney group prepared a survey for the Board of Directors. The survey was very comprehensive. The Board feedback concerning AHA governance was very telling to the Charney group and consequently to AHA leadership. A large majority of our Board members feel that they did not have an understanding of what constitutes effective organizational performance for AHA. The survey further revealed that all of the respondents feel there needs to be an understanding of what constitutes good governance, and an overwhelming majority feels it is important that we have an effective governance structure in place. With this feedback in hand, I then appointed a Governance Task Force consisting of the AHA Executive Committee, and the Board of Directors elected Mary Jane Brown, Terry Andreasen, Dale Harvill and Gary Millar. Armed with the results of the survey, this group met with Bill Charney for two intensive days of assessment, evaluations and dialogue about our governance structure.

A report was delivered to the Board at the March meeting. The Board of Directors divided into separate work groups, discussing the presentation, examining options for improving our governance structure as well as considering obstacles, and brought their individual group recommendations back to the full Board. Those sentiments will be forwarded to Bill Charney, who will review the feedback and meet again in late April with the Task Force. The Task Force will report to the Board at the May meeting. Board members firmly believe we need to initiate organizational changes, and at the same time not change the all-important delegate structure and not change anything that will impact our Annual Convention. I view this initiative as essential in our moving forward as an Association and have taken the direction given me by the Board as a priority for the Association. I will keep you informed as we move forward on this.


There is no doubt that the favorable financial picture this year has come about as a result of the actions taken by the Board of Directors over the past two years. Quite simply, we're working better and smarter and using best practices to guide us in our efforts to be more businesslike. I am pleased with the progress we have made in the cornerstone of Financial Responsibility. Treasurer Frank Galovic reported that we have been improving our financial picture each year and this year we will even go beyond our expectations. I admit our financial picture was scary for a while, but I think the consistency of getting AHA back on track of a financially sound organization is coming to reality. Even though we are now producing a net profit we are not out of the woods yet. Having this income is extremely important to us as it means we can move forward on important capital improvement projects that have been long delayed because of a lack of funds. We have neglected to have the visionary planning of capital improvements. For example our AHA building in Aurora is in bad need of repairs, everything from heating and air conditioning to the roof; we have committed to a huge investment in IT. All of these improvements cannot be made unless we (AHA) are financially sound and projected profits are evident.


A half-hour documentary is nearing completion and will be placed on cable channels later this spring. In addition, we plan to develop commercials that can be placed in any number of venues, including the RFD channel. Dan Lawrence, Senior Director of Marketing, told the Board that the exposure the Association had at the FBR Golf Tournament in Scottsdale was very successful from the standpoint of placing us in close proximity with many large companies that are potential corporate sponsors. There will be more on this important initiative later. The Board was told to watch for the "new look" of the AHA magazine this spring. "The Modern Arabian Horse" is designed to put AHA to the forefront of Arabian horse magazines. Within a year, and with vigorous advertising initiatives, they anticipate the magazine to be totally self-sustaining. Directors also learned that the Arabian Community Shows have reached a total of 65 shows for 2007, with the goal set at 75. We already have three shows lined up for 2008! This new show venue has become the envy of the equine world and has filled an important niche in our community. Directors were given an overview at the March meeting of the Public Relations Representative Network and the many new programs and marketing materials that AHA now has. All of us are "ambassadors" for our breed. If you don't know who the public relations representative is in your region, contact your regional director.


I believe it is important that we reach beyond our own North American borders to create and enhance our relationship with others in the international Arabian horse community. As a leadership organization, we have much to gain by such relationships. This past March, I was in Brazil to judge the 22a Exposicao Interestadual Do Cavalo Arabe Show. I had the opportunity to meet many owners of Arabian horses. I was impressed with the professionalism displayed at the show, the quality of horses shown, and the great atmosphere. After the show, I was invited to attend the ABCCA, (Associacao Brasileira dos Criadores do Cavalo Arabe) annual meeting, awards banquet, and stallion auction. I met with the president of the association, Mr. Luciano Cury, and had several discussions regarding many aspects of the Arabian horse industry. Mr. Cury invited me to address his membership, a first for an AHA president. My comments, expressed through an interpreter, were very well received. I met the new Board of Directors of ABCCA as well as the incoming president, Mr. Joao Roberto Sorvilo. I was also able to later visit several Arabian horse farms. I was very impressed with the passion the South American owners and breeders have for their Arabian horses. It is energizing to see this passion and enthusiasm. I enjoyed not only seeing the beautiful farms and horses, but also experienced great hospitality and genuine warmth from the people of Brazil. I want to publicly thank all of those who made this important visit a memorable one, especially to Mr. and Mrs. Cury, and Ms. Maria Helena Vidal, a long-time employee of the association, who was so kind and helpful.

• Directors at our March meeting approved a new 501(c)(3) "charity" for the Arabian Horse Association. This is something we have needed to do for some time. The new Charity is a merging of the Arabian Horse Foundation and the new AHA Charity; this will provide the opportunity for those devoted to the breed who want to make a tax deductible gift, or make a bequest to the Charity, to do so. There will be more information on this important new initiative and the opportunities for giving and supporting the Association later.


• Judges and Stewards Commissioner George Johnson reported at the Board meeting that by the time the new American Halter Judging system goes into effect April 1, 2008, two-thirds of our judges will have attended seminars to be prepared for the new system. He is confident we will have enough judges to staff our shows.


• My congratulations to the Scottsdale Show Committee for putting on a great horse show which truly exemplifies the words "an event." The show staff and board of directors are to be commended for a great show, which was one of the largest ever. Horse sales seemed to be up, there was an air of excitement and enthusiasm and the energy level was great. The Arabian Reining Horse Association is also to be congratulated on their futurities. I was honored to be asked to help present the winning checks. For the Purebred winner, the check was $50,000, and for the Half-Arabian winner, the check was $80,000. Overall at the show, there was great prize money and the Signature Stallion Auction brought in over $600,000, and the new Arabian English Pleasure Futurity paid a whopping $100,000.


• Scottsdale was also the site for the racing community's Darley Awards that were presented at a wonderfully informative banquet on the final Saturday night of the show. Racing is becoming increasingly popular in our Arabian horse community; the members are very proactive and many have formed successful partnerships. I appreciated being invited to this prestigious awards ceremony, and I look forward to attending any future racing functions.


• While in Scottsdale, I was a guest speaker at the Institute Symposium for the Desert Arabian Horse and was able to give this group an update on the many accomplishments and positive things that are happening in our breed and Association. I very much appreciated the invitation to speak before this group.


• In an overview of our national horse shows, we had positive reports of new and exciting things happening. First off, congratulations to the Canadian Nationals for their 50th year anniversary. With the theme built around this important milestone, the show promises to be one of the best ever! The Youth Nationals has a major new addition. The country music band Emerson Drive will perform at the show, with special discount tickets for exhibitors, and an open invitation to the public. Our Sport Horse Nationals goes back to the East Coast this year with a higher number of horses expected. And, the U.S. Nationals will be held for the last time at Albuquerque, so this major event promises to be one of the best and biggest ones ever at this facility.


• The Association is taking a fresh new look at efforts to encourage breeding of Arabian and Half-Arabian/Anglo-Arabian horses. Registrations have been on a decline for a long time and at this time they have indicated to be level. There will be new initiatives to encourage breeding and I will share more about these new initiatives in the future.


• The recently formed USEF Youth Council has had an initial meeting, and the chair elect for the year 2008 is the AHA representative, Monica Christian. Monica, who serves this year as co-chair, was AHA Youth of the Year last year. Our representation on this board is important as we forge relationships with other breeds and equine entities. Congratulations Monica!


• The AHA Board of Directors has been invited to the annual Think Tank held June 2 -3 at the Hat Ranch in Arizona. I have always wanted to provide a private retreat for the Board members and I appreciate Bazy Tankersley's generosity in hosting this event. Although this is a busy time of the year for many of those on the Board, many of the Directors will be in attendance. This gathering provides a relaxed atmosphere and opportunity to talk openly and candidly about our breed and Association.


• I want to congratulate the owners and exhibitors of three horses that received the 2006 Ambassador Award. The Board approved Ambassador Awards to: Aurora MR+//, to OKW Entrigue+++//, and BTA Intrigues Finesse+/. These horses truly represent our breed in a very positive way and are to be honored!

As is typical when I communicate with you, I realize that I have given you a lot of information. I sincerely believe it is important to keep you informed about our breed and our Association. You are the driving force behind so much of what we do. I want to publicly thank the AHA Executive Committee and our Board of Directors for their efforts and commitment, particularly during the last Board meeting. These leaders are helping to make the organization the very best that it can be. I see hard work, commitment, and a desire to make a difference in all that they do. We still have a tremendous amount of work to do, and I will continue to seek your support. I remain thankful for all the support you have provided in the past.

Thank You and God Bless,