As we turn the corner and head into spring (what happened to winter, anyway?), our members are looking forward with increasing anticipation to the annual EXPO L.A. Symposium, on April 24 & 25, 2002. Whether its just to network with peers whom we see infrequently, to pick up a bundle of CCM renewal credits or prepare for the next CCM examination, or to really learn about the tasks and responsibilities of financial management – and treasury management in particular – the two-day Symposium is our single most important event of the year. So make sure you’re there on April 24-25, 2002 at the Omni Los Angeles Hotel, in downtown L.A. Incidentally, maybe this is a good opportunity to take the train (MetroRail) or the subway (MetroLink) to relax on the way and forget about parking and one-way streets going the wrong way.

Springtime also brings with it the pleasant challenge of inviting members to step forward and participate in a leadership role in the Association. There’s no better place than SCAFP to learn how to be a leader and take responsibility for producing results. So I encourage you to consider taking on some responsibility for moving our Association forward during the coming year.

The Nominating Committee of Chuck Whitney (Union Bank of California and SCAFP’s President-Elect), Chuck Hays (Hays Consulting and SCAFP’s Immediate Past President), and I (Bort & Company, Inc.) are actively soliciting members who might be interested in becoming involved in any aspect of the Association. The slate of officers and directors-at-large will be announced in April, balloting will be conducted in May, and the new officers and directors will take office as of July 1, 2002 for a one-year term. All officer positions are also directors of the Association and most also chair committees, including:

I look forward to seeing you at the next meeting, on March 15 (note the changed date from the usual second Friday of the month) and at EXPO L.A. Symposium on April 24-25.

Dick

Richard Bort, CCM

President

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Our members hear from Executive Management Associates at least once a month because EMA sets up and manages our monthly luncheon meetings. EMA has been our association management firm since 1990. This year, EMA also is managing the EXPO L.A. Symposium after many years of our using another firm. So who is EMA?

Supporting Larry, Cathey, and Janine is a staff of 12 , any one of whom you might encounter if you were to call EMA with a question. The firm’s offices are in Burbank, where they house computers, servers, and all the machinery and equipment needed to successfully manage their nine association clients’ affairs, meetings, seminars, and annual conferences. We couldn’t exist without EMA!

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Trends in Treasury Automation

The presentation reviews the current state of treasury technology and what's on the horizon. The discussion begins with an analysis of the benefits of in-house web-based treasury systems, typically used by Global 2000 organizations. Next, the presentation will focus on treasury ASPs (hosted treasury solutions) mainly used by mid-tier organizations that cannot afford the typical treasury management workstation. Finally, the presentation will cover on-line trading and information networks and the value they offer to subscribing organizations.

Brian Thompson is a Director for SunGard Treasury Systems currently responsible for SunGard's eTreasury.com service, the leading hosted treasury management solution. He has more than ten years' experience in the treasury software industry including sales, product design, consulting and system installation and has lead many user and technical training sessions. He is a frequent speaker on treasury technology and is a member of AFP and SCAFP. Mr. Thompson received a B.S. in business management and an M.B.A. from Pepperdine University.

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The educational program is top-notch. We have four separate tracks over two days to provide a variety of presentation topics to meet your needs and interests. You can learn about the latest techniques in the field of banking and financial services as well as information technology. Bounce your most difficult questions off of our experienced and qualified speakers. If they do not know the answer, it is likely that someone in attendance at the presentation can direct you to a solution.

You can catch up with old friends and make new friends as you expand your professional network in the treasury field. Bring lots of business cards. A luncheon companion can provide a contact or a idea that when executed could make you a hero in your organization. I single good idea can often provide thousands of dollars of benefit to your organization, and functions like Symposium are where ideas like that are generated.

You will also want to make contact with our sponsoring vendors who are offering the services that can improve the efficiency of treasury operations in your organization. They are also providing financial support for our organization and insuring the financial success of EXPO LA Symposium 2002.

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The following link leads to a proposed California Law that will modify, limit or supercede the Electronic Signatures in Global and National Commerce Act. Treasury managers are encouraged to review the proposed changes to determine how they may be affected. Comments on the Bill should be directed to your respective state senators and to the Bill's author, Senator Sher.

Thank you, John Mattly, CCM

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CCM EXAM

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Bill Luehrmann, Sponsorship Chair for EXPO L.A. Symposium, April 24 & 25, 2002, reports that sponsorship interest has been extremely strong. Six organizations have stepped up to be Platinum sponsors in addition to seven Gold sponsorships, five Silver and five Bronze at last count. Additional sponsorship opportunities are still available. Funds provided by sponsors show support for our local organization, all sponsors are able to capitalize on a targeted market opportunity and the funds go a long way toward holding down the registration costs for all attendees.

Sponsors at the Platinum, Gold, and Silver levels receive complimentary registrations and their choice from four bonus options. All sponsors will have a display table in the foyer area nearby to the luncheon and breakout rooms in The Omni Los Angeles Hotel. Sponsors are invited to display their marketing materials there and they may choose to staff the table to make personal contact with conference attendees.

Thanks to all of the sponsors who have committed so far and we welcome those who have not yet come on board. If your organization is interested in being a sponsor, contact Bill Luehrmann at 310-443-6283, or call the Executive Management Association offices at 818-843-5660.

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107th Congress
The Second Session of the 107^th Congress convened on January 23, and immediately focused on the Enron crisis, campaign finance reform, the farm bill and the Administration's FY2003 budget. At last count, eleven congressional committees/ subcommittees are investigating or holding hearings on various aspects of the Enron failure.

Terrorism Insurance Coverage
Efforts to create a federal role in reinsuring against terrorist acts have stalled. Proponents have been unable to gather any hard evidence that not having reinsurance for terrorist acts is hindering economic growth or leaving a significant number of properties exposed to the financial consequences of terrorist acts. Gathering this data is complicated by the fact that companies that are no longer insured for terrorist acts are unlikely to disclose this information or its impact on their future growth plans.

Internet Tax Ban
Now that the Internet Tax Ban has been extended through November 1, 2003, state delegates participating in the Streamlined Sales Tax Project are actively working to develop a uniform, simplified sales tax system that could be sent to the states for consideration by summer.

Deposit Insurance Reform
House Financial Institutions Subcommittee Chairman Bachus (R-AL) introduced "The Federal Deposit Insurance Reform Act of 2002," which the full House Financial Services Committee intends to mark-up by April. Sen. Johnson (D-SD) introduced a similar bill on February 14.

Bank Lending Standards
The Federal Reserve reported in its January 2002 Senior Loan Officer Opinion Survey that lending standards and terms continued to tighten in the last quarter 2001, but at a less rapid pace than in previous quarters. AFP and the Capital Markets Research Center at Georgetown University recently conducted a survey to assess the degree to which corporate access to short-term credit may be contingent upon the use of other commercial and investment banking services.

Enron Impact on Accounting Profession
There are ongoing hearings in both houses of Congress to determine the causes of the bankruptcy of the seventh largest company in the U.S. The results will likely shape future regulation of the accounting profession. AFP is monitoring and analyzing the accounting, pension investment management, and derivatives issues triggered by the Enron bankruptcy. The Government Relations Committee is drafting recommendations for accounting and financial reporting reform targeted at the causes of the Enron collapse.

SEC Proposes Changes to Corporate Disclosure Rules
The SEC announced plans to propose the first in a series of changes to its corporate disclosure requirements. The proposed new rules will provide accelerated reporting of transactions by company insiders in the company's securities; accelerate the filing of quarterly and annual reports; expand the list of significant events requiring current disclosure on existing Form 8-K; and, require disclosure of critical accounting policies in the Management's Discussion and Analysis section of the annual report.

Proposed Project on Revenue and Liabilities Recognition
FASB is seeking comments on a proposed project to address the recognition of revenues and liabilities in financial statements. AFP plans to file a comment letter on the objective and scope of the proposed project. The comment deadline is March 29, 2002.

Company Stock in 401(k) Plans
In response to the Enron situation, President Bush has proposed legislative initiatives dealing with company stock in 401(k) plans, transaction suspension periods ("blackout" periods) and related topics. In addition to the Administration's proposals, many bills have been introduced.

Investment Advice for Pension Plan Participants
On November 15, 2001, the House of Representatives passed H.R. 2269, The Retirement Security Advice Act of 2001. H.R. 2269 makes it easier for 401(k) plan participants to access investment advice. An alternative bill, S. 1677, The Independent Investment Advice Act, was introduced in the Senate on November 13, 2001. The legislation creates a "safe harbor" from liability for plan sponsors who exercise prudence in the selection and monitoring of an investment advisor.

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