'Ii 'huI u-J --1 1511 Street, N. W. Washington. D. C. 20005 THE SUGAR ASSOCIATION, INC. ANNUAL MEETING OF THE BOARD OF DIRECTORS CHICAGO, ILLINOIS MAY 12, 1977 Agenda A Report of Nominating Committee Election of Auditor, Counsel and Special Counsel Report of the Treasurer Research Project Funding Schedule Summaries Starcmont of Rcvenuws/Expenses and Budget International Sugar Rcsvarch FoundaLion Krtarlns of Interest Area ;xx2 628 0189 . . . ad-A-\ll-V' SCHEDULE OF EXPENSES Provisional I Budgeted Budget FY 76/77 FY 77/78 I ADMINISTRATIVE Salaries 150,000 160,000 Payroll Taxes/Hosp. 12,000 14,000 Def. Comp/Bons/Pension 26,000 26,000 Special Counsel 40,000 40,000 Travel 14,000 14,000 Professional Fees 21,000 21,000 Rent 20,000 22,000 Office Equip./Rental 6,500 7,000 Office Supplies/Exp. 6,000 6,000 Telephone/Telegraph 9,000 9,000 Postage 3,500 4,000 Meeting Expenses 10,000 10,000' I Confer. Entertainm't 10,000 l0np00 Insurance/Taxes -- Office 1,800 1,800 Library 4,000 4,000 Miscellaneous 2,000 2,000 TOTAL - ADMINISTRATIVE 335,800 350,800 SCIENTIFIC PROGRAMS 0,000 Food Nutr. Adv. Coun. 60,000 ,r "60,000 Consulting/Monitoring 35,o0oW 35,000 1 ISRF 115,000 110,000 Research Projects--F&NRF 200,000 230,000 I TOTAL -- SCIENTIFIC 4 0,000 465,000 PUBLIC RELATIONS Fee 30,000 30,000 Salaries Benefits 45,000 50,000 Writing Placement 20,000 15,000 Media Relations 50,000 50,000 Home Ec. Program 145,000 170,000 SITDOM Merchandising 30,000 10,000 Film Dist/Prom. 25,000 25,000 Newsletter 10,000 8,000 Food Editors Liaison 6,000 6,000 Miscellaneous 15,000'gJ* 12,000 3 0-000 TOTAL - PUBLIC RELATIONS . 376,000 EDUCATIONAL PROJECTS Exhibits 19,000 19,000 Dist/Prcd. Printed Mat'l 8,000 8,000 Dist/Pr'd Mat'l--Unbudgeted 5,000 5:000 Distribution of Film 10,000 TOTAL -- EDUCATIONAL 42.000 GRAND TOTALS $1,193,800 $1,233,800 BUDGET 197y1978 As you know, for the last two years we have been operating on an unbalanced budget in order to meet the necessary scientific and public relations needs of the industry. This increased budget in reality has been a deficit one; but as our reserves, accumu- lated over previous years, had increased considerably, these defi- cits were absorbed by our fund balance and enabled reduced assess- ments to the membership. However, the picture for 1977/78 is one that needs attention and decision. From the enclosed statements of actual and estimated expenses, you can see that if we establish a similar budget for 1977/78, as was approved'in we will be in a precarious position at the end of the fiscal year. This is, of course, not desirous nor per- missible. Revenues: As you see, the membership contributions for 1977/78 are estimated at the same level as for 1976/77. This is a guess, as I have no way of estimating tonnages for the coming year. I do think, however, that at the present rate of mils per 100 lbs. for raws and 6 mils for numbers are in the ball park. The contribution is based on $10,000 per and at present we have eight. Interest is estimated. The estimated revenues together with the estimated fund balance for 6/30/77 total $1,096,599. Expenses: The total of these is $1,233,800, which is about the same as the previous year. Administration: The small difference from 1976/77 reflects only increased costs, which I am sure everyone in the industry will understand. There is no increase in personnel, but there has been an increased output from the present staff. Scientific Program: The major item in this category is the cost 5f'the FWAC and the sums from the CRMs and ourselves, which are set aside for approved research. This latter sum ($230,000) is not necessarily spent; but if not, the balance is accrued for subsequent years and cannot be used for other purposes. The ISRF contribution is in accordance with our agreement with that organi- zation. All in all this category of expenses cannot be reduced as it involves our agreement with the CRMs and our desire to maintain research as a main prop of the industry's defense. Public Relatitms: The PCC met recently and has come up with plans . fl and a budget. This budget is similar to last year's, with the main expense being our Home Economics program. You will note that this has been increased to allow for one or two "floating" speakers on a national basis. This is in excess of the present 10 dietitians being employed part-time in nine marketing areas. The PCC feels that although this program is not spectacular it continues to be effective at the important grass roots level, bringing the industry in contact with professional nutritionists. The cost of film distribution is the result of success.l As you know, we distribute the film free of charge as a public service. Plans are afoot to modify distribution procedures, but as we have bookings through the rest of this year economies will not be realized until 1978 at the earliest. The remainder of the PR budget is for the usual public relations effor which together with the Carl Byoir services have been the mainstay of our work in defending and preventing attacks on sugar as a food. Educational Projects: The only item of consequence in this category is Exhibits. Some small savings could be made here by cancelling our contracts with the exhibitor organizations, such as Soft Drink, Con- fectioners and Food Technologists. Again, this will not improve our position to any degree and some goodwill would be lost if we did so. In summary, the present program is basic--what we need. Perhaps it should be considered a minimum. If we had to make cuts in this budget it would mean emasculating the Public Relations program, since the scientific expenses are obligatory on the basis of our commitments. I It would seem, therefore, there is a responsibility on my part to recommend to you and the membership an increase in dues to enable the Sugar Association to carry on a balanced and necessary program for the industry. There is also a possibility of relief by increased to mention just here again this increase would only reduce our deficit, not offset it. I know that from a financial point of view this is not the most pro- pitious time to request an increase in dues, but from the point of view of McGovern Report for instance--it seems essential. I suggest that the dues be increased by 50%, which would bring the dues structure to 6 mils for raws and 9 mils for refined. These rates are the same as prevailed during the years when advertising was the mainstay of our program. We have enjoyed the benefits of deficit spending the past two years, owing to our reserves, but we must now face the as they may be.