MINUTES OF THE ASNE COUNCIL MEETING
31 May 2011
Enclosure(s):
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
Council Meeting Minutes – 3 May 2011
Audit Committee Report – 31 May 2011
Audit Committee Meeting Minutes – 23 May 2011
Email from Steve Morris – 19 May 2011
Audited Financial Statements Report from Halt, Buzas & Powell, LTD - 4 April 2011
Halt, Buzas & Powell, LTD Audit Recommendation Letter – 4 April 2011
Halt, Buzas & Powell, LTD SAS 114 Letter – 4 April 2011
Halt, Buzas & Powell, LTD SAS 115 Letter Statements – 4 April 2011
Scholarship Committee Report – May 2011
Scholarship Recipients – 2011-2012
Ways & Means Committee May Committee Report
Ways & Means Committee Meeting Minutes – 17 May 2011
NEEC Statement of Financial Position – 30 April 2011
ASNE Headquarters Balance Sheet and Income Statement –30 April 2011
ASNE Scholarship Balance Sheet and Income Statement – 30 April 2011
Accounts Receivable Balance – 31 March 2011
Ways & Means Cash Flow Projections – April 2011
FY2012 Draft Budget – December 2010
Naval Engineers Journal Update to Council – May 2011
Recommendations for Naval Engineers Journal Publication Process and Vendors – 27 May 2011
NEEC Progress Report – 31 May 2011
SNAME – ASNE Joint Ship Design Committee Meeting Minutes – 25 May 2011
Attachment:
(A)
Attendance List
1.
The Council of the American Society of Naval Engineers met by teleconference at ASNE Headquarters,
1452 Duke Street, Alexandria, VA 22314. Enclosures (1) through (23) were posted on the Council intranet site
prior to the meeting. ASNE President Kathleen Hinton presided, calling the meeting to order at 1100. A quorum
was present. An attendance list with contact information is provided as Attachment (A).
2.
The May 2011 Council Meeting Minutes were approved with a spelling correction in section 7. (Enclosure
(1) was posted on the Council intranet site prior to the meeting.)
ACTION ITEM: Staff will correct the spelling of the word “summer” in the May Council meeting minutes and
repost.
3.
President’s Announcements - President Kathleen Hinton attended the Intelligent Ships Symposium IX (ISS
IX) held at Drexel University in Philadelphia, PA on May 25-26, 2011. President Hinton reported that the exhibits
were sold out, sponsorships were up and the program included more technical papers than in past years. She noted
that the exhibits were very well received and that many attendees provided positive feedback. She added that the
participation by the students from the National SeaPerch Challenge added an exciting extra dimension to the event.
4.
Audit Committee Report – CAPT Joe Yurso, USN (Ret.), past President and Acting Chair of the Audit
Committee, presented the committee’s comments and recommendations regarding the external audit report that was
completed by Halt, Buzas & Powell (HBP). (Enclosures (2) through (8) were posted on the Council intranet site
prior to the meeting.)
CAPT Yurso noted that the auditors had recommended that ASNE implement a policy to limit members of the
Audit Committee, Ways & Means Committee and the Council from serving simultaneously on more than one of the
three bodies, although the committees should continue to maintain open lines of communication and to share
information where applicable and appropriate. Therefore, Mr. Steve Morris has voluntarily resigned from the Audit
Committee and will continue to serve on the Ways & Means Committee.
ACTION ITEM: Staff will draft a policy regarding membership on Council and the Audit and Ways & Means
Committees for review at the August Council meeting.
CAPT Yurso noted that the auditor’s report recommended that the Executive Director have signature authority on
all section bank accounts. CAPT Dennis Kruse, USN (Ret.), Executive Director, reported that the staff is working
with support of the Ways & Means Committee to secure signature authority for all ASNE section accounts.
CAPT Yurso reported that the auditors did not concur with the practice of assigning a standard fee for headquarters
support of symposia and they recommended that a method be implemented based on actual expenses for that
support. Ms. Megan Sinesiou reported that the staff has already begun maintaining timesheets per HBP’s
recommendations. However, it may take up to a year to accumulate sufficient data to accurately estimate the costs
for symposium support. It was noted that assigning the full cost to symposia may reduce the amount of revenue
available to distribute to the sections. The Ways & Means Committee will work with staff to evaluate the impact of
these changes and prepare a report for Council.
ACTION ITEM: The Ways & Means Committee will report at the December Council meeting on the progress of
altering the symposia fee to reflect the cost of staff support.
CAPT Yurso reported that the auditors had commented on delays in accounting and reporting due to limited staff
support for the accounting function, and they recommended that a monthly closing calendar be implemented. CAPT
Kruse reported that action has been taken to provide additional support for the Accounting Manager, Ms. Nancy
Lackey, and more help is forthcoming. Over the past year staff responsibilities and tasks have been adjusted to
increase emphasis on accounting support; and an accounting firm was hired to support NEEC accounting and to
help with audit preparation. Temporary staff support has also been brought in to help with the heavy workload
resulting from four symposia in the last six weeks of the fiscal year. Progress will continue to be monitored and
assessed and staff will coordinate with the Ways & Means Committee to ensure requirements are met.
ACTION ITEMS:
 The Executive Director will coordinate a meeting with the President, incoming President and the chairs of the
Ways & Means and Audit Committees to discuss Accounting Department staffing.
 Staff will present progress on a monthly closing calendar at the August Council meeting.
CAPT Yurso noted that HBP recommended that all of the Sections use the same accounting software to maintain
their finances and that all Sections should keep original documentation for all deposits. While copies of the
deposited checks do not need to be stored, certain documentation relating to the deposit of checks is necessary to
complete the auditing process. They also recommended that passwords for the accounting software should be
maintained by a staff member outside of the accounting department. Ms. Sinesiou reported that the passwords are
being kept by Ms. Maggie O’Brien and are also being stored in a safety deposit box.
ACTION ITEM: The Audit, Ways & Means and Sections Committees will coordinate to address options for
resolving audit deficiencies for section accounting and preparation and reporting of section audits. They will
provide a report at the October Council meeting.
 CDR Dave Wood, USN (Ret.) will report on the status of sections accounting practices and identify which
sections are having difficulties at the August Council meeting.
The Audit Committee has agreed that HBP should conduct the audit for the next fiscal year. HBP will provide an
engagement letter for the Council’s consideration.
ACTION ITEM: The Audit Committee will take action to get a letter of engagement from HBP and to have them
add titles or subjects on each of the letters in their report.
The hiring of HBP to conduct the audit for the upcoming fiscal year was unanimously approved subject to
Council approval of the engagement letter.
5.
Scholarship Committee Report – Ms. Maggie O’Brien presented the Scholarship Committee’s report on
behalf of Dr. Jennifer Waters, who served as interim chair of the committee for this year’s selection process.
(Enclosures (9) and (10) were posted on the Council intranet site prior to the meeting.) The number of applicants
for ASNE scholarships decreased this year compared to previous years. However, the committee reported that there
were still an adequate number of well-qualified applicants. The Committee welcomed four new members. The
Committee will meet in July to discuss ways to attract more applicants and reinvigorate the Scholarship Committee
as a whole.
The committee recommended 22 scholarship recipients this year. One additional selectee withdrew from
consideration due to availability of alternate funding.
ACTION ITEMS:
 Anyone interested in joining the Scholarship Committee should contact Ms. O’Brien or Dr. Jennifer Waters.
 Suggestions for improving the scholarship award process should be submitted to Ms. O’Brien.
 President Hinton, President-Elect Kiss and the Executive Director will confer to discuss finding a Scholarship
Committee Chair.
The Scholarship Committee’s report was unanimously approved.
6.
Ways & Means Report - CDR Pfeifer presented the Ways & Means Committee’s report. (Enclosures (11)
through (18) were posted on the Council intranet site prior to the meeting.) The NEEC financial reports have been
completed and are currently posted on WebExOne. Mr. Jeff LeClair of Wells Fargo will be providing a quarterly
investment update at the upcoming Ways & Means Committee meeting in July.
CDR Pfeifer reviewed the Society’s financial reports. No symposia have taken place since the previous Ways &
Means Committee meeting and there were no new symposia budgets or closings to review. There was a negative
realized income for the month of April. A large net increase in income is expected from May to June as revenue
from the Intelligent Ships Symposium, Multi-Agency Craft Conference and Mega Rust 2011 is recognized.
CDR Pfeifer reviewed the accounts receivable report, noting that outstanding accounts receivables have decreased
by $2,662 in April bringing the total down to $55,663. This amount is expected to decrease further as several large
outstanding payments are expected over the next month. All outstanding debt will continue to be tracked and
collected.
CDR Pfeifer reviewed cash flow projections. Cash flow going into November is expected to be in excess of
$700,000 and does not include revenue from symposia slated to occur in the months following November.
CDR Pfeifer reported that the Ways & Means Committee will continue discussions regarding the implementation of
new investment policy objectives. While the Committee has reached agreement on several general objectives, a
more thorough discussion is required before the Committee can formally adopt new investment policy guidelines.
CDR Pfeifer reviewed the status of previously approved building maintenance projects. A contract was awarded to
TRULAND Service Company for the amount of $8,140 to repair and replace 50 light fixtures at ASNE
Headquarters. Bids are still being solicited from other contractors for the remaining projects.
The motion to allow allocated building maintenance funds to extend beyond FY11 was unanimously approved.
CDR Pfeifer reviewed the draft headquarters budget for FY 2012. The current draft indicates a $50,000 deficit for
the fiscal year. However, the committee expects to be able to present a balanced budget for review at the July
Council meeting.
ACTION ITEM: The Ways & Means Committee will present updated Investment Policy guidelines at the August
Council meeting.
7.
Executive Session – The staff was excused during the Executive Session.
The Council unanimously approved additional funds for staff bonuses to recognize the staff role in a very
successful year.
8.
NEEC Status Update - Mr. Bob Keane, Society Vice President, discussed the NEEC mentoring meeting to
be held at ASNE Headquarters on 2 June 2011 in preparation for the NEEC summer meeting. (Enclosure (20) was
posted on the Council intranet site prior to the meeting.) Mr. Keane noted that the National SeaPerch Challenge
held at Drexel University on 24 May 2011 was very successful. Mr. Keane also announced that Dr. Tony Dean will
be the new NEEC Project Director. Mr. Keane also noted that the minutes of the Joint Ship Design Committee had
been provided for Council information. (Enclosure (21) was posted on the Council intranet site prior to the
meeting.)
9.
Admiral Harvey’s Challenge – RADM Tony Lengerich, USN (Ret.) presented the status of his efforts
regarding the response to Admiral Harvey’s Challenge. He has met with VADM Kevin McCoy, Commander of
NAVSEA, and with other key leaders. RADM Lengerich has discussed the topic with leaders from the United
States Naval Institute (USNI) to get their input; and they also discussed the potential for a joint ASNE/USNI event
to review the current state of naval engineering and consider what is needed to ensure the profession is ready to
meet the future needs of the naval services.
RADM Lengerich has synthesized the information he has gathered into a digestible format to be used for further
discussion and to provide the basis for a report to be presented to Council at a future meeting.
10.
NEJ Transition Status Update – Ms. O’Brien reported that she has been working with a consultant to
determine the best workflow for assembling and publishing the Naval Engineers Journal and she presented a report
that outlined alternatives and a recommended an approach for transition of NEJ publication. (Enclosures (22) and
(23) were posted on the Council intranet site prior to the meeting.)
Given the small staff size and the challenges that ASNE has faced with NEJ in the past, the consultant
recommended contracting with an experienced production editor. The consultant will assist with finding a suitable
production editor. Ms. O’Brien also noted that she will be looking for a printer that can provide both digital and
print versions of the NEJ and will also evaluate potential hosts for the online archive of NEJ. The proposed new
process is estimated to be cost neutral in comparison with the cost of working with Wiley Blackwell; and it will
allow a greater degree of flexibility in preparing, producing and distributing the NEJ.
The proposed NEJ transition plan was unanimously approved.
11.
ASNE Day 2012 – CDR Dwight Alexander, USN (Ret.) reported that the ASNE Day 2012 Planning
Committee met on 14 April 2011 and has drafted a POA&M. The Committee will meet again on 2 June 2011, and
they aim to make enough progress to be able to release the call for papers on schedule.
12.
Report on Recent and Upcoming Symposia – CAPT Kruse briefly reviewed the status of recent and
upcoming symposia.
 Revenue for the Intelligent Ships Symposium IX, which will be held on May 25-26, 2011, is expected
to meet, if not exceed, budget expectations.
 Exhibit sales have gone extremely well for both the Mega Rust 2011: U.S. Navy Corrosion
Conference, which will be held on June 6-9, 2011, and the Multi-Agency Craft Conference
(MACC), which will be held on June 14-16, 2011. Sponsorship sales are lower than anticipated and
registration has not yet reached expected goals for both events. There were some online registration
issues for MACC, but most of the problems have been resolved.
 Planning and preparation is currently on track for the Electrochemical Power Sources R&D
Symposium, to be held on June 20-23, 2011 in Monterey, CA.
 There is some concern that registration may be impacted for upcoming FY 2012 meetings due to the
financial brownout that many warfare centers will be experiencing due to the transition of their
financial systems.
13.
The date for the July Council meeting has yet to be determined. Votes are still being collected for the
preferred date of the July Council meeting as well as the Leadership Turnover Dinner. Votes will be
tabulated and the results will be distributed via email in the coming week. The meeting was adjourned at
1242.
Note: it was subsequently announced that the next meeting would be held on Wednesday, July 6, 2011 in
the ASNE conference room with teleconference available.
Respectfully submitted,
Dennis K. Kruse
CAPT, USN (Ret)
Executive Director
Council Meeting Attendance
31 May 2011
Ms. Kathleen E. Hinton
Society President:
RDML David H. Lewis USN
Society Vice President:
Mr. Robert G. Keane Jr
Society Vice President:
Dr. Jennifer Kehl Waters
Society Vice President:
Ms. Tiffany Adams
Section Vice-Chairman: Southern Indiana
CDR Dwight Alexander, USN (Ret.)
ASNE Day 2012 Chair
CAPT Glenn AsheUSNR (Ret)
National Committee Chairs: Program Committee
LCDR Bob Bernstein, USCG (Ret.)
National Council-Elect
Mr. Christopher J. Bigler
Section Chairman: Central Gulf Coast
CAPT Alan J. Brown USN (Ret)
National Committee Chairs: Education & Prof Dev Cte
RADM Jeffrey A. Brooks, USN (Ret.)
National Council
Mr. Eric M. Cargill
Section Chairman: Northern New England
RADM Joseph A. Carnevale USN (Ret.) Past Presidents Active:
CDR Richard C. Celotto USN (Ret.)
National Committee Chairs: Rosenblatt Bequest Ad-Hoc
Mr. Dennis A. Chaney
National Committee Chairs: Publicity Committee
Mr. Rey B. Cheesman
Section Chairman: Inland Empire
Mr. Edward N. Comstock
National Council:
Dr. Robert W. Cox IV
National Committee Chairs: AD Tech Papers Chair
Mr. Michael J. D'Amato
National Council:
Dr. John C. DaidolaP.E.
Section Chairman: Metropolitan
CAPT Stephanie A. Douglas, USN (Ret.) National Council
Cdr Joseph A. Dugan III USCG
Section Chairman, Puget Sound
CAPT Jerome J. Fee USN (Ret.)
Past Presidents Active:
Mr. J. CareyFilling Jr
National Committee Chairs: ASNE Day Exhibits Committee
Col James B. Fritz USMC
Section Chairman: Quantico
RADM Dale G. Gabel USCG
Past President Active:
CAPT Jeffrey Q. Gamble USCG (Ret)
National Council:
Mr. Max A. Gianelloni
Section Chairman: Pascagoula
Ms. Kaylene H. Green
National Committee Chairs: Presidents Club Coord Cte
CAPT Richard D. Hepburn PE USN (Ret) Past Presidents Active:
RADM Lowell J. Holloway USN (Ret.)
Past Presidents Active:
LT Clint Hoskins, USN
Regional Council: Region VI
RADM Mark Hugel, USN (Ret.)
National Council
Vacant
Section Chairman: Channel Islands
CAPT Joseph L. Johnson Jr USNR
National Committee Chairs: Combat Systems
Mr. Alfred M. Joseph
Regional Council: Region V
CAPT John Kaplan, USCG (Ret.)
Ballot Committee Chair
RADM Gene R. Kendall USN (Ret.)
Section Chairman: Jacksonville
RADM Randolph W. King USN (Ret)
Past Presidents Active:
Mr. Ronald K. Kiss
President-Elect
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khinton@memach.com
David.H.Lewis@navy.mil
keanerg@comcast.net
jwaters@usna.edu
tiffany.adams@navy.mil
dwight.alexander@ngc.com
gashe@eagle.org
rbernstein55@yahoo.com
christopher.bigler@ngc.com
brown@aoe.vt.edu
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ecargill@plansysit.com
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Richard.C.Celotto@uscg.mil
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rey.cheesman@navy.mil
edward_n_comstock@raytheon.com
rcox3@uncc.edu
michael.damato@ngc.com
john.daidola@ngc.com
stephanie.douglas@navy.mil
joseph.a.dugan@uscg.mil
jjfee@shentel.net
james.filling@navy.edu
jim.kim.2@comcast.net
dggabel@mail.com
jeff.gamble@l-3com.com
max.gianelloni@ngc.com
kgreen@flagshipgovrelations.com
rdhepburn1@prodigy.net
lholloway3@cox.net
clinton.hoskins@navy.mil
mhugel@caci.comg
johnsmjos@saic.com
ajoseph@caci.com
jkaplan@alum.mit.edu
gene.kendall@hotmail.com
rkingnavy@aol.com
rkkiss@aol.com
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Council Meeting Attendance
31 May 2011
CAPT Dennis K. Kruse USN (Ret)
Executive Director:
RADM Anthony W. Lengerich USN (Ret) National Council:
CAPT Joseph J. Luckard Jr USN (Ret) Regional Council: Region V Alternate, San Diego Section Chair
Dr. Bill Luebke
National Council:
CAPT Dennis P. Mahoney USN (Ret)
National Council:
CDR David T. Marcello USNR (Ret)
Regional Council: Region 1
Dr. Leigh S. McCue
National Council
CAPT James L. McVoy USN (Ret)
Executive Director Emeritus:
Ms. Deborah P. Michael
Executive Assistant
CDR Michael J. Mielnik USN (Ret)
Regional Council: Region II Alternate
Ms. Karen D. Miller
National Council:
Mr. Stephen Morris
National Committee Member: W&M, Audit
RDML James A. Murdoch USN
National Council:
VADM George P. Nanos Jr USN (Ret.) Past Presidents Active:
RADM James K. Nunneley USN (Ret)
Past Presidents Active:
Ms. Margaret J. O'Brien
Associate Director for Communications & Technical Media
CDR Marty C. Oard, USCG (Ret.)
Section Chairman: Tidewater
CDR Charles Pfeifer, USN (Ret.)
National Committee Chairs: Ways & Means Committee
CDR Michael F. Pierson USCG
National Committee Chairs: ASNE Day Exhibits Co-Chair
Mr. Badrudin Pirani
Section Chairman: Southern Indiana
CDR Thomas C. Remmers USCG
Section Chairman: Golden Gate
CAPT Jeffery S. Riedel USN
National Council:
CAPT Paul J. Roden USCG
National Committee Chairs: Co-Chair, Joint Strat Alliance
RADM David P. Sargent Jr USN (Ret)
National Committee Chairs: Long Range Planning
Mr. James T. Savage
Section Chairman: Aloha
Mr. Bradley D. Secrest
Regional Council: Region IV
LCDR Thomas A. Seigenthaler, USN
Section Chairman: Monterey Peninsula
RADM Thomas U. Seigenthaler USN (Ret)Regional Council: Region II
CAPT Paul F. Siebeking PE USN (Ret) Regional Council: Region III
Ms. Megan C. Sinesiou
Associate Director for Programs & Operations
Dr. Alfred Skolnick
Past Presidents Active:
Mrs. Sara H. Skolnick
Executive Director Emeritus:
CAPT Jim Stevens
ASNE Day 2012 Vice Chair
Mr. David Stevenson
Section Chairman: Flagship
VADM Paul E. Sullivan USN (Ret)
National Council:
Dr. Clifford A. Whitcomb PhD CSEP
National Committee Chairs: Journal Committee
CDR Thomas D. Willson USN (Ret.)
National Committee Chairs: Audit Committee
CDR David W. Wood
National Committee Chairs: Sections Committee
CAPT Joseph F. Yurso PE USN (Ret)
Past Presidents Active:
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dkruse@navalengineers.org
lengerichaw@yahoo.com
joseph.luckard@gat.com
william.luebke@navy.mil
dennis.mahoney@satcon.com
davemarcello@comcast.net
mccue@vt.edu
jlm1820@aol.com
dmichael@navalengineers.org
mielnikm@hotmail.com
karen.dunlevy-miller@navy.mil
smorris@dandp.com
james.murdoch@navy.mil
pete@nanos.net
jkn52usna@yahoo.com
mobrien@navalengineers.org
Martin.C.Oard@uscg.mil
pfeifercg@cox.net
pierson.nywamd@verizon.net
badruddin.pirani@navy.mil
thomas.c.remmers@uscg.mil
jeffery.riedel@navy.mil
paul.j.roden@uscg.mil
david.sargent@sei-companies.com
jim.savage@Kratosdefense.com
bradley.secrest@navy.mil
seiget@gmail.com
tseigenthaler@ndieng.com
kp59pe@verizon.net
msinesiou@navalengineers.org
skolnicka@verizon.net
skolnicka@verizon.net
james.g.stevens@ngc.com
drstevenson@verizon.net
paul_sullivan@verizon.net
cawhitco@nps.edu
twillson@csc.com
dw.wood@ngc.com
jyurso@cox.net
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