ACTE Annual Report

President's Letter

To Our Members:

As the year draws to a close, and as we all take stock of the objectives met and new goals to set for the future, I can say with a certain amount of satisfaction that this has been a period of healthy growth, and of maturation, for ACTE. Financially speaking, the 1994-95 fiscal year was a good one. We are ending the year in solid shape, with a moderate operating surplus and strong economic projections for 1996.

One of the most significant successes we've seen this year has been in membership growth. The attrition that ACTE had experienced in the past two years has been abruptly arrested. Now ACTE's membership is approaching 1,100, representing the elite of both the supply side and the corporate side of the business travel industry. More than 30% of ACTE members are from outside the US, with the most substantial growth coming from the UK. The globalization of ACTE is one of our most important objectives, and the momentum for continued membership growth outside of North America continues apace.

As for operations, we've made significant improvements there as well. In September, 1994, we hired a new executive director, Terrell Mellen, whose background in corporate travel marketing and management experience proved essential in restructuring the organization. Under her direction, the ACTE staff was reorganized and the headquarters moved to Washington, D.C. New staffers Lisa Lopinsky, Bill Harrison and Rachel Cohen bring to the table a high standard of professionalism and depth of experience.

On the education front, the Annual Members Conference ACTE VII Toronto and ACTE Global Budapest, were both critical and financial successes. So too have been the regional forums, which have been held in the UK (London), Canada (Calgary and Toronto) and the US (New Jersey, Minneapolis, San Francisco and New York). Regional, more socially oriented activities have proved popular as well. Communications have been expanded and improved. The ACTE newsletter has been revamped, and the ACTE Quarterly was totally redesigned. Both fulfill important communications purposes within the ACTE membership, and in the case of the Quarterly, to the outside business world as well.

In reviewing our successes, I have to tip my hat to the tremendous efforts of volunteers, who have dedicated considerable time and effort in helping realize the goals of the association. From the Board of Governors to the Industry Advisory Council, the ACTE European and Canadian leadership and regional conference committees, the myriad standing committees, task forces, I applaud you for your insights and expertise. The sheer number of volunteers who've made a difference this year is remarkable. We are truly indebted to all of you.

Special recognition is also due to past presidents Rudy Monteleone, David Murphy and Steve Bush, who laid the foundation that allowed for many of these positive changes; and to the officers who are concluding their terms of office. They have done a especially noteworthy job during a challenging transition period.

I've been honored to have served as ACTE's president during this eventful year. It's been an enlightening, enriching time for me personally and professionally. I'm also pleased that ACTE is well positioned for the future. When the new officers and Board members take office in February, 1996, we can feel confident that they'll be able to actualize ACTE's vision, and take ACTE confidently into the future.

Armand LeCompte

Treasurer's Message

Financial Responsibility

The financial statements of the Association of Corporate Travel Executives, Inc., have been prepared by management which is responsible for their integrity and objectivity. These statements have been prepared in accordance with generally accepted accounting principles and, where appropriate, reflect estimates based on judgments of management.

On behalf of the ACTE management, we wish to express our appreciation to all ACTE volunteers, suppliers and staff for their strong support and commitment. ACTE's success is directly related to these professional leaders and their guidance in this ever changing industry.

Michael E. Spooner
Vice President-Finance

Auditor's Opinion

Board of Governors and Members
Association of Corporate Travel Executives, Inc.

We have audited the balance sheets of your Association at May 31, 1995 and 1994 and the related statements of income and fund balance for the years then ended. These financial statements are the responsibility of the management of the Association. Our responsibility is to express an opinion on the statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examination on a test basis of evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion these financial statements present fairly, in all material respects, the financial position of the Association at May 31, 1995 and 1994 and the results of operations for the years then ended in conformity with generally accepted accounting principles.

July 31, 1995

Gale M. Hammarstrom, CPA
1505A Troy Towers
Bloomfield, New Jersey 07003

Balance Sheet

Year ended May 31, ASSETS 1995 1994 ------------------------------------------------------------ Current assets Cash $141,242 $146,101 Accounts receivable 53,970 36,100 Due from Foundation 2,184 2,184 Other current assets 3,581 833 Total Current Assets 200,977 185,218 Furniture and equipment less accumulated depreciation 13,559 1,898 Rent deposit 2,126 Other assets 16,904 --------------------- Total Assets $233,566 $187,116 --------------------- ---------------------

LIABILITIES AND FUND BALANCES

Current liabilities	
        Accounts payable and 
	accrued expenses	        $121,866      $84,869
	Note payable			       0       15,000
	Total Current Liabilities	 121,866       99,869
Fund balance			         111,700       87,247
                      			---------------------
	Total liabilities 
         and fund balance       	$233,566     $187,116
					---------------------
					---------------------

See notes to financial statements

Income Statement

                                          Year ended May 31,
INCOME	                                 1995   	1994
-------------------------------------------------------------
Membership dues	  			$130,185     $124,087
Meeting revenues	                 621,470      423,968
Advertising sales	                  68,021       43,034
					---------------------
	Total income	                 819,676      591,089
					---------------------
					---------------------	
EXPENSES
-------------------------------------------------------------
Payroll costs and benefits	         132,955      117,376
Meetings	                         421,979      170,924
Printing	                          74,950       58,297
Selling and administrative	         136,121       60,469
Interest	 			     320        2,381
					---------------------
	Total expenses before 
		 nonrecurring	         766,325      409,447
					---------------------
	Income before nonrecurring        53,351      181,642
Nonrecurring expense	      		  28,898      100,000
					---------------------
Net income			        $ 24,453    $  81,642
					---------------------
					---------------------
Fund balance
	Balance-beginning	          87,247	5,605
	Net income (loss)	          24,453       81,642
					---------------------
Balance-ending	                        $111,700    $  87,247
					---------------------

See notes to financial statements

Financial Statements

Note 1 - Significant accounting principles.
The Association uses the accrual method of accounting with the following exceptions. Membership dues are recorded on the cash basis, and no deferred income is recorded for the portion of the membership that extends beyond the end of the fiscal year. Advertising sales and printing expenses are recorded as sales are billed and expenses are incurred. No deferred income or prepaid expenses are recorded for these items. No such deferred income or prepaid expenses apply to any period beyond one year from the end of the current fiscal year.

Furniture and equipment are depreciated on a straight line basis over a seven year life. Detail of the amounts shown on the balance sheet is as follows:

                                       Year ended May 31,
				      1995	      1994
Furniture and equipment	             $14,60         $2,415
Accumulated depreciation	      1,043            517
	                           $  1,89          $2,243

Note 2 - Nonrecurring expense.
This expense represents severance benefits of a former staff member, write off of #furniture and equipment of the former New Jersey office and startup expenses of the new office in Washington, D.C.

Note 3 - Contingent liabilities and possible litigation.
Note 3 to the financial statements of May 31, 1994 mentioned the possibility of litigation by a former ACTE executive for wrongful discharge. Since the executive has made no specific allegations to support his claim, ACTE's counsel is unable to assess the contingency, and management believes that the liability included in the financial statements in connection with the expiration of his contract is adequate.

Note 4 - Results of operations.
ACTE's reorganization of headquarters staff and their responsibilities combined with our office relocation to Washington, D.C. impacted results of operations for the fiscal year ended May 31, 1995. However, management believes that these expenditure will position ACTE for the future in serving its members and expanding its educational opportunities in support of our business travelers.

General Information

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