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From: Cyndi Howells <>
Subject: [APG] NGS News Release
Date: Tue, 13 Jan 2004 11:07:26 -0800

NEWS RELEASE
For immediate release
12 January 2004

By now you may have heard that in December 2003 the current Board of
Directors of the National Genealogical Society released a statement
announcing changes in the board. After accepting the resignations of the
president, treasurer, and secretary, the remaining board members elected
new officers and formed new committees.

It is important that everyone know that these actions were not taken
lightly. Despite the board's initial confidence in a new management
structure, a majority of the board came to be concerned about its effects
on our organization. At the mid-November board meeting financial
statements were not shared with the whole board. Then during the last week
of November 2003 the board discovered for the first time that over a period
of less than four months, NGS's investments had been depleted from nearly
$500,000 to approximately $50,000.

Immediate and far reaching action was necessary. A new Special Audit
Committee was charged with investigating the circumstances under which the
NGS finances had been so quickly exhausted without the knowledge of the
whole board. To supplement the yearly audit already underway, a forensic
auditor was retained by NGS legal counsel to analyze the financial
statements for October and November 2003. The board felt it was extremely
important to gather facts and understand the findings before making this
official statement.

Once the board confirmed that expenditures were much greater than revenues
and the NGS reserves had been spent to compensate, we had no choice. On
December 16, 2003 we dismissed the Executive Director on a "without cause"
basis as NGS is permitted to do under the employment agreement in place.

What we have found confirms that there was excessive spending well beyond
what had been revealed to the board; but as yet there is no evidence of
fraudulent activity by any party. Remaining board members have promptly
begun the process of correcting our financial situation. With prudent
action, since November we have cut expenditures almost in half, including
the elimination of staff positions. The measures we have taken so far have
already improved our financial outlook, although we still have a long way
to go.

The board looks forward to continuing and expanding the valuable role of
NGS. The NGS GENTECH 2004 conference is but two weeks away and plans are
continuing for an exciting conference in Sacramento in May. Of necessity
much of our focus will be on reestablishing our financial health. At the
same time we plan to sustain our valued programs, begin new initiatives,
and move forward.

The NGS board of directors is committed to leading this organization in the
most responsible and professional manner into its second century of service
to the genealogical community. For one hundred years, NGS has been a
leading national organization for individuals who care about genealogy. We
intend to keep it that way, working with you to move forward. It must be a
joint effort. We want and need your involvement more than ever!

We will keep you informed.


Sandra M. Hewlett

for the
Board of Directors
National Genealogical Society
4527 17th Street North
Arlington, VA 22202
703-525-0052


Address questions to
or
Ann Carter Fleming, President

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• [APG] NGS News Release by Cyndi Howells <>