Management Accounting/ In Three Sections— Section 3 October 1966 WHAT PERSONAL OEVELOPMENT MEANS 10 - ONAL A Cr - , 1 t, IT 3 f, 'TQ Annual Report 1965 -66 NATIONAL ASSOCIATION OF ACCOUNTANTS EXECUTIVE COMMITTEE President Joseph L. Brumit, New York Vice Presidents J. Lynn Crandall, Indianapolis Robert J. Enersen, Florida West Central Philip L. Giroir, New Orleans Ray E. Longenecker, Lancaster Cary A. Marshall, Los Angeles Earl A. Matheney, Tulsa Robert A. Morgan, Peoria S. Alden Pendleton, Pittsburgh David W. Rewick, Cleveland Albert S. Roberts, Hartford Fred J. Sengstacke, New York Raymond E. Smith, Minneapolis Treasurer William H. Beadle, New York Appointed Members Donald J. Guth, Dallas John V. James, Dallas James E. Meredith, Jr., New York Grant U. Meyers, North Texas Kenneth R. Rickey, Peninsula -Palo Alto Julius G. Underwood, Harrisburg Past National Presidents Merwin P. Cass, Newark Colin A. Stillwagen, San Diego Chairmen of Standing Committees Accounting Development Paul W. Holt, Bridgeport Chapters Ettore Barbatelli, Milwaukee Finance and Budget Thomas L. Morison, Boston Membership Robert G. Chapman, Los Angeles Promotion and Public Relations Doren D. Vest, Washington Research Planning Robert Beyer, New York THE PRESIDENT'S REPORT I would like to report briefly on some of the activities of your Officers, Executive Committee and National Board during 1965 -66. Substantial growth and improvements were realized in the following areas: • The Future —The historic character of the accounting profession, and the role of the management accountant in business enterprise is changing rapidly. To insure that our goals, objectives, and organization are attuned to these changes, a long range planning effort was initi- ated by the appointment of a special committee chaired by Past National President, I. Wayne Keller. This special committee has been requested to: --- Consider the economic, social, governmental and technical changes expected to take place in the next 10 and 15 years which will affect the nature and character of the role and responsibilities of the management accountant. — Consider the implications of such changes on the mission and role of the National Association of Accountants, recommending to the Executive Com- mittee and National Board steps required to adapt Association goals, services, and organization to them. The findings and recommendations of this special committee are expected to have a profound impact on the character and future course of our organization. • Educational Activities —A new and expanded pro- gram of educational conferences was successfully launched. In the fall and spring programs, 61 separate conferences were held in four cities, providing a flexible choice of locations, subjects and types of conferences. Designed to reflect the need of an increasingly complex technology and business environment, this program will be revised and updated annually. This Continuing Education Program supports one of the principal goals of the Association, an awareness of the need for mem- bers to maintain their technical competency. • Publications —The "new look" in NAA publications has surely been apparent to all of you. A new logo, or ■ 1 ■ symbol, (such as the one on the cover of this report) is now being used on all printed matter produced by the Association. MANAGEMENT ACCOUNTING, the new name of our technical publication, more accurately reflects its contents, and the addition of color and the re- design of the cover make it more attractive. Similar changes in the NAA news magazine reflect the desire of your officers and directors to publish educational, interesting —yet attractive magazines. ('hapters —The number of chapters increased to 203 as a result of a chapter expansion program and a revised organizational policy. As the year ended, five new charters were approved, effective July 1, 1966, and other organizational committees have begun making surveys of their areas. It is expected that the impetus received during the year will result in at least 215 chapters by the end of 1966 -67. The new Warner Trophy was awarded for the first time to the winner of the competition for chapters with 100 members or less. This group of chapters is steadily growing in number, and already improvements are apparent in the quality of member service activities as a result of the new rivalry. • Membership —I am proud to report that the member- ship of the Association reached a new high, reaffirming the position of NAA as the largest accounting associa- tion in the world. At June 30, 1966, there were more than 58,000 members. But we know the potential is even greater —there are some 500,000 accountants in the United States alone! . Public Relations —Our publicity activity at the na- tional level was very successful. Press coverage of the addresses at the Annual Conference in New York was much more extensive than in the past. In addition, The New York Times featured a special article on the conference, highlighting the unconventional aspects of a convention that caters to the whole family. Research —A new basic research study, Concepts for 2 Management Accounting, was at the printers as the year ended, and will be available to members in August 1966. Other projects are in progress, including a newly approved project which covers the problem definition phase of the total Integrated Management Information Systems study. Finance —Our financial position is sound, as can be seen from the following pages. The surplus of $90,900 from our year's operations is gratifying. However, a large portion of this surplus results from underspending for printing and distribution of research reports —a timing variance which will have an unfavorable impact on future years' operating results. Reports from our standing and special committees follow, except for the Special Committee on Long Range Objectives whose initial report is not yet complete. This is necessarily a summary of the Association's many activities. Space does not permit a full account of the many national committee meetings nor of the visits of national officers and staff to chapters. Their work in large part goes unheralded but the results can be clearly seen in improved services, more efficient chapter admin- istration and increased esprit de corps. To the Chairmen of these committees, the National Board of Directors, the Executive Committee, the National Officers and the Staff headed by Executive Director Rawn Brinkley, my sincere thanks for their cooperation, effort and a job well done. It has been an exciting time to be involved in the affairs of NAA. I am grateful for the opportunity to have served as your 46th President. It has been one of the most rewarding experiences of my life. President 3 ACCOUNTING DEVELOPMENT Continuing Education Program The NAA technical education program has always been based on the premise that members' education must continue throughout their lifetimes or they will fall by the wayside. To more aptly reflect this idea the Committee on Accounting Development recommended and the National Board approved a change in name of the technical program to Continuing Education Program. As redesigned, the Association's Continuing Education Program will feature a series of education courses and ,seminars in major cities of the country. This program will provide opportunities for discussing current develop- ments and exchanging ideas, experiences and practice. It is hoped that it will serve each member as a cornerstone of competence ... and as a catalyst for change. The increase in conference participation over past years shows that this program is steadily gaining stature. Steps were taken to insure that more members are made aware of the program through promotion at the chapter level. These steps are outlined in the report of the Committee on Chapters. Chapter Educational Program Response from chapter officers and directors indicates that the member participation meeting concept, introduced June 1, 1965, has achieved approval of members. These meetings, together with the seven monthly chapter tech- nical meetings, will be continued. The Committee on Accounting Development also suggested that increased interchange of information among chapters concerning technical programs should be encouraged. Dr. James S. Lanham, Director of NAA Educational Services, presents Michael Tyran with Lybrand Gold Medal Award certificate for top manuscript published i n 1965 -66. Scene at the Annual Conferenc e in New York as one of the tec hni c al sessions got under w ay. Publications The National Board approved the use of a uniform Certificate of Recognition by chapters to express their appreciation to members participating in the manuscript activity. Educational Activities Steps were taken to encourage chapter participation in educational activities at the local level. The student publication service activity will be given more emphasis. Under this special program, NAA offers to provide copies Of MANAGEMENT ACCOUNTING for a nominal fee to interested students during the school year. Accounting Careers Council Participation by NAA chapters in the activities of the Accounting Careers Council increased substantially again this year. Reports from local controls indicate that NAA is one of the most active organizations involved in ACC, which is jointly sponsored by leading accounting and financial organizations. Among other activities the ACC: • Established a national central distribution office for literature on accounting careers at the University of Notre Dame. • Began distribution