THANK YOU!

TEAMWORK

Outline

• Finance - David Walker

• Audit Committee - Britt Lovin

• Dues Task Force - Lloyd Robinson

• GAWDA U Online - Kent Van Amburg

• Young Executives - Richelle Smith-Brecht

Financial Overview

• Audit Results

• Strong Balance Sheet

• Reserves

• Revenues

Financial Overview

• Fiscal Year To Date

• Change To Calendar Year

• Consolidation

• Consultant Savings

Definition of Audit

• Began as part of the Strategic Plan with Boardin Phoenix, May 2007

• Adopted by full Board September 2007

• Last audit was done 2001

• Formed Task Force (Britt, Jenny, David, Jack, Phil)

• Board set as formal committee in Chicago 2008

• Members are President-Elect, 1st Vice President,

Treasurer, At-Large Distributor and At-Large Supplier

• 4 areas to evaluate• Consultants not under contract &/or contract out of date

1. Consultants

2. Dues Structure

3. Budgeting Process

4. Association Management

• Fact driven

• Business approach

1. Consultant Revamping

a. Evaluation457 responses to surveyPurpose of member survey was to assess use, satisfaction, and importance of consultants

b. Surveyed 3 Groups 1. GAWDA membership 2. Other associations 3. Consultants

Many associations eliminated their consultants

Oversight of Financial and Contractual Issues

1. Utilization by Members

2/3 of members utilized consultants88% distributors have a need for safety/dot49% distributors indicated consultants as primary reason for membershipMike Dodd most used by members

2. Perceived Performance

Mike Dodd scored highest

Survey of Members - Outside Firm

1. Survey Results

BreakdownDistributors 299 / 65%Suppliers 158 / 35%

CategoriesDistributors Suppliers3m< 10% 3m< 12%3-25m 31% 3-25m 10%>25m 23% >25m 11%

Join Date1960 & Before 23%1961 to 1989 51%1990 to 2007 23%

Internal - Committee Members

1. .2. Financial Considerations

2005 cost $334,2592006 cost $450,2422007 cost $400,1772008 cost $368,569 * projected2009 cost $267,000 * budget

One year terms (1st year hybrid) (2009)

Internal - Committee Members

1. .2. .3. Discussions with Consultants

• Told them what we were doing• Q&A individually and together• Defined scope of services

Contracting1. Requests for Proposals Ask each to submit proposals based on scope of services

2. Evaluation of Alternatives Committee calls Phone calls to each consultant with Q & A Offers and counter offers

Clarification of offers

Internal - Committee Members

1. .2. .3. Discussions with Consultants (cont.)

Outcomes:

1. Rick Schweitzer – Government Affairs/HR2. Mike Dodd – DOT/Safety3. Tom Badstubner - FDA/Medical4. TAP Resources - Operations5. David Irving - Insurance6. Mike Degan – Fumes7. Joe Ellers - Sales

Internal - Committee Members

Cost Savings

2007/08: $ 31,6082008/09: $101,569

Self perpetuatingAssigned to a committeeMust report contacts under uniform reporting systemOne year contracts

Through This We Will Be a Better Association

Q & A 1:30 to 2:30 in Imperial Ballroom H & I

Summary

WINSTON CHURCHILL

“CHANGE IS THE PRICE OF SURVIVAL”

Equity and Fairness

• Significant member concern

• Will increase in consolidation effect benefits?

• Are mega distributors paying fair share?

• Should number of categories be changed?

Equity and Fairness

• 80% of members below $10M

• $100M members not paying fair share

• Handling Dual Members (Distributor/Supplier)

• Equity of base dues for suppliers

Maintain Revenue

• Insures viability of GAWDA

• Maintain revenue with additional consolidations

• Distributor Programs-Consultants, GAWDA-U

• Strong and successful regional meetings

• Supplier Programs-Contact Booths at meetings

• Supplier access to membership and networking

Proposed Changes

• Change from fiscal to calendar year

• 14 months for price of 12 in 2009

• Across the board percentage increase

• Distributor side change from 10-18 levels

• Smaller distributors between 2-5% increase

• 30% increase for distributors over $100M

Proposed Changes

• Supplier side floor for access/participation

• Supplier side less than $5M --$1500/yr

• Supplier side change from 10-15 categories

Proposed Changes

AWISCO gets 28% increase to show fairness

In Conclusion

• Sustained Benefits

• Organizational Success

• Mutual Support

Companies that have signed training agreement: 6 total

GAWDA University On-line

• Butler Gas

• General Distributing Company

• Toll Company

• Welder’s Supply Company of Louisville

• Scott Gross Company

• AWISCO

Employee Users to date: 40

Companies testing program: more than 30

Updated the GAWDA U Brochure to include the 27 current courses and 16 future course offerings.

GAWDA University On-line

GAWDA University On-line

• Contact Kate Cole at Headquarters

• Introductory webinar with Norco

• Receive temporary access to explore program

• Sign training agreement with GAWDA

• Managers receive training from Norco on accessing curricula and maintaining online accounts of employees training

• GAWDA will bill you quarterly based on usage

Program Goal

To provide young executives:

Educational programming

Networking opportunities

Develop skills and knowledge of the industry

Program Eligibility

45 years of age or less

Employed by GAWDA member company

Excited about gases and welding industry

Seeking ways to develop personally & professionally

How Do I Join?

Complete an application at www.GAWDA.ORG

Provide a letter of reference

What Does YE Offer?

Educational sessions at each SMC and annual conventions

Networking events at all conferences

Scholarships to University of Industrial Distribution

Scholarships to many other programs

Annual YE Retreat

GAWDA Edge

Educational Sessions

SMC- Chicago, Il March 21-24

HR Committee presentation on wage and hour compliance

SMC- Asheville, NC April 21-24

Young Execs social event/ Tour of Biltmore estate

Workshops by Horton Group

Young Distribution Professionals Conference

2008 – Eaglewood Resort and Spa Itasca, IL Aug 3-6

Golf Outing

Networking

9 speakers

Attended by 75 people from 40 different distributor associations

GAWDA gave scholarships to 5 member company associates

GAWDA Edge is a publication designed for young professionals to help them grow their careers in the gases and welding industry.

Network online

Ask questions of peers

Learn about the industry

Opportunities for young execs to share with articles.

5700 copies sent out electronically each month

www.gawdaedge.org

Young Executives Volleyball and Beach Party

Celebrate the end of summer with your GAWDA friends.

Enjoy a summertime barbeque, sun, sand and fun while challenging your colleagues to a game of volleyball. Thursday September 25th 10:00am -1:00pmat West Beach.