Upheaval in the National Genealogical Society
Thursday January 15, 2004
By now you may have heard that the National Genealogical Society has been going through some major organizational changes. In December 2003, after terminating the Executive Director Wendy Herr, and accepting the resignations of President Curt Witcher, Secretary Amy Johnson Crow, and Treasurer Stephen Kyner, the remaining NGS board members elected new officers and formed new committees. So, what's really going on?
As the situation at NGS continues to unfold, current board members are being careful with the details they share. It has been confirmed that over a period of less than four months, NGS's investments had been depleted from nearly $500,000 to approximately $50,000 due to excessive spending that wasn't shared with the board (it is important to note that an audit did not reveal any suspicion of fradulent activity). Upon the board's learning of this, the executive director, Wendy Herr, was first suspended with pay, and then fired "without cause." President Curt Witcher and Treasurer Stephen Kyner immediately resigned, and Secretary Amy Johnson Crow followed suit a few days later. NGS Learning Center Director John Humphrey also resigned, and several NGS employees were laid off, including communication director Russ Henderson. Among them were several people I greatly respect and admire. Wonderful men and women I have come to know through dealings online and at NGS conferences. NGS just won't seem the same without them.
According to Dick Eastman and Leland Metzler, both of whom spoke with several NGS board members this week, the board members have been working very long hours to rectify the damaging situation, stabilize the society, and move forward as planned with upcoming conferences.
The latest official statement from the National Genealogical Society:
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 ngs@ngsgenealogy.org
or
Ann Carter Fleming, President
As the situation at NGS continues to unfold, current board members are being careful with the details they share. It has been confirmed that over a period of less than four months, NGS's investments had been depleted from nearly $500,000 to approximately $50,000 due to excessive spending that wasn't shared with the board (it is important to note that an audit did not reveal any suspicion of fradulent activity). Upon the board's learning of this, the executive director, Wendy Herr, was first suspended with pay, and then fired "without cause." President Curt Witcher and Treasurer Stephen Kyner immediately resigned, and Secretary Amy Johnson Crow followed suit a few days later. NGS Learning Center Director John Humphrey also resigned, and several NGS employees were laid off, including communication director Russ Henderson. Among them were several people I greatly respect and admire. Wonderful men and women I have come to know through dealings online and at NGS conferences. NGS just won't seem the same without them.
According to Dick Eastman and Leland Metzler, both of whom spoke with several NGS board members this week, the board members have been working very long hours to rectify the damaging situation, stabilize the society, and move forward as planned with upcoming conferences.
The latest official statement from the National Genealogical Society:
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 ngs@ngsgenealogy.org
or
Ann Carter Fleming, President
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