Well, I have blown my New Year’s resolution not to engage Horrace Cain again this year. I swore to myself I just was not going to do it again this year. Horrace is pretty good at pulling my string. So… I lost. He picked and picked… I responded. I am going to renew the vow. Wish me luck.

I would like to discuss this year’s EVP election.

First, Horrace will be nominated for the position, by his local friends, if no one else. If less than three viable candidates are nominated, he will be on the ballot. It’s about that simple (my opinion). That’s all I have to say about Horrace.

The EVP position is unique. Under the AMA bylaws, the empty title of CFO is awarded to the EVP. The CFO has no inherent power, other than to monitor operations and issue reports. Virtually every action as CFO requires a motion by the EC. If the EC has no faith in the EVP, it’s unlikely motions will be made or passed. Instead, outside services may be purchased.

The EVP position has developed into something unforeseen when the bylaws were changed in the ‘80’s. The position described in the by-laws is no longer what is asked for by the EC, or required for the operation of the AMA.

Doug Holland came to the EC at the request of Chuck Foreman, a previous VP. Holland was appointed to the position by the EC. Holland owns a CPA firm. He donates a tremendous amount of time and effort to the AMA. If some one without the expertise he possesses were to fill the position, my guess is that it would cost the AMA upwards of $300,000 a year to buy the services Holland donates, based on what is being paid for similar expertise here in California.

Doug Holland does not like or pursue the limelight. Instead, he quietly makes recommendations, and, if asked by the EC, makes every effort to carry out those that involve his expertise. As an example, in the past he arranged to roll together several loans (total $4,000,000 IIRC) the AMA had outstanding and finance them with Indiana Educational Bonds. In the last EC minutes it shows that he was concerned with the fact that interest rates are rising from the 1.2% interest rate, and was 1.95% at that reporting. He was talking about entering into a fixed rate loan to avoid future increases. Now, I don’t know about the rest of you, but, I can see that someone without Indiana or tax expertise might have cost the AMA a large amount of money over the years the loan has existed. A lot of money!

The biggest surprise to me, personally, was the hiring of Don Koranda that Doug spearheaded. In the years that Doug has held the position, he has kept the AMA’s reserves invested in low risk issues that have returned better than market averages. I can go on with his accomplishments, but, I won’t. If you expected this to be a pitch to re-elect Doug, it is and it isn’t.

Doug Holland has not yet decided if he wants to run again. It concerns me that he might not.

If you or someone you know is truly capable of performing as the CFO of a $25 million non-profit (Dave Brown’s estimate of value), run yourself, or try and talk them into running. At least in my opinion, the time has passed where the job can be handled by an amateur. Candidates need to be a CPA and a tax expert in non-profits, with some experience in running a non-profit (my opinion). Finding people like this is not easy, since it pays nothing.

Perhaps, as the EC tried to do, it is time to rewrite the by-laws. Maybe moving the CFO part of the position to a paid staff position is an idea whose time has arrived. Perhaps the EVP should be a Director on the Board of Directors (EC) and not have the CFO position included in the duties. Perhaps the AMA can continue to find a qualified volunteer willing to hassle with the politics to fill the position. I don’t know.

If you feel that Doug is the right answer, calling him and telling him so might sway him to run. Alternately, sending e-mails to him through the AMA staff might serve the same purpose. Writing him an e-mail directly is ineffective. Even if he runs, and wins, this problem is not going to go away and needs to be addressed by the EC.

All of the above is my opinion.