To: SSA Board of Directors

From: Mitch Withers, Treasurer

Date: April 15, 2008

Recommend that an Investment Committee be formed to investigate the feasibility of modifying section 8.8.1 of the Board Policy Manual and to recommend to the Board such changes as may be appropriate. The Investment committee may also provide recommendations on specific policies and procedures for long term maintenance of the Society's investments.

Sections 8.8.1 and 8.8.2 state:

8.8.1. With the exception of monies in the Bill Joyner Memorial Fund, it is the policy of SSA to invest excess cash in the following approved investments: certificates of deposit, money market funds, U.S. Treasury bills, and AAA-rated government and corporate bonds. The Society maintains one equity mutual fund (State Street Investment), but no additional investments in stocks or stock mutual funds are permitted.

8.8.2 The contributions and proceeds from investments in the Joyner Fund will be invested in a balanced variety of conservative mutual funds and government securities in order to achieve long-term capital growth as well as current income. A mix of investments, including broad market index funds (such as those that track the S&P 500 index), government-backed securities (such as GNMA funds), and a money market fund, may be used. The selection of the investment portfolio will be the primary responsibility of the SSA Treasurer, in consultation with the members of the Joyner Fund Committee.

For example, the Joyner fund earned $14,840 in FYE 1/2007 on $96,938 (a 15% gain) and the Life Membership fund, invested much more conservatively, earned $1,746 in FYE 1/2007 on $25,672 (a 7% gain). The SSA undesignated investments provide assurance of the continued health of the society during lean financial periods thus preservation of capital is primary. The society may still suffer a financial loss on its investments if growth does not exceed inflation. A portfolio that provides balance between growth and preservation as well as investment areas and instruments is in the best interest of the Society. We propose therefore that the board approve an investment committee to investigate the feasibility of modifying section 8.8.1 and to recommend to the Board such changes as may be appropriate. The Investment committee may also provide recommendations on specific policies and procedures for long term maintenance of the Society's investments.