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TRANSCRIPT
of ASME Codes andStandards
th Anniversary
2008-2009ANNUAL REPORT
John F. Elter was named chair of the Board of Directors ofThe ASME Foundation in June 2008 and served with ded-ication and leadership throughout the fiscal year. The
board held five meetings in FY09, including a retreat on Janu-ary 11. At the retreat, the board members closely examinedthe factors influencing the growth of The ASME Foundationsince its incorporation in 1986, as well as directions and path-ways to ensure future success. Among major developments inFY09, a stronger board structure was created, which resultedin the formation of new committees along with a renewed com-mitment to raise more funds to support ASME and promotethe culture of philanthropy.
Promoting PhilanthropyThe ASME Foundation is committed to fostering a culture ofphilanthropy throughout the Society. It is through the gen-erosity of its donors that the Foundation is able to serve ASMEin promoting the art, science and practice of mechanical andmulti-disciplinary engineering throughout the world.
FY09 was a productive year in terms of donor activity. Theannual appeal drew a total of $62,602 from 487 donors.Approximately 50 percent of the donors to the annual appealwere first-time contributors. Thirty-three additional donationstotaling $79,325 were received for the Frank Von Flue Award,Milton Shaw Memorial Award, Joe Falcon Award Fund, andAllan Kraus Award Fund. Scholarship funds were also
boosted in 2008-2009, with gifts totaling a combined $52,750for the Virginia Tech Memorial Scholarship, Bruce J. HeimFoundation Scholarship, and ASME Metropolitan SectionScholarship. An estate gift of $348,393 was received from theestate of Margaret Orr, as well.
The Engineering the Greater Good Campaign to create ongo-ing support for the ASME Federal Fellows program gainedmomentum, reaching a total of $2.6 million by the close of the
THE ASME FOUNDAT ION 2008-2009
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HONORING THE PAST, SERVING THE PRESENT, INVESTING IN THE FUTURE
John F. Elter, chair of the Board of Directors of TheASME Foundation for FY09 welcomes participantsand guests at the 2009 ASME Innovation Showcase(IShow) held at the ASME Annual Meeting in June.ASME’s IShow provides the full experience oftechnology product commercialization, bridging thegap between engineering school practicum andbusiness school theories. As an advocate for themechanical engineering profession and sponsor ofthe ASME IShow, The Foundation offers a venue forindividuals, corporations, and organizations investedin technological advancement for the benefit ofhumankind.
The ASME Foundation hasannounced a fund-raising
campaign to support theSociety’s Federal Fellowsprogram. The Engineering the
Greater Good campaign wasofficially launched at the 2008
ASME International MechanicalEngineering Congress and Exposition in Boston. The campaign will reachout to corporate and individual donors in an effort to generate funding toexpand one of the Society’s most successful government relationsprograms. ASME federal fellows provide valuable engineering andtechnical expertise to policy makers in the U.S. Congress, the White HouseOffice of Science and Technology Policy, and key government agencies,such as the U.S. Department of Homeland Security. ASME federal fellowshave advised government leaders on environmental risk analysis, thesecurity of the nation’s critical infrastructure, engineering education, codesand standards, energy, and many other subjects affecting public policy.
fiscal year. The Engineering the Greater Good Campaign con-tinues in both its corporate and individual donor phases.
The Archimedes Club, made of up ASME members who makea planned gift in support of the future of the mechanical engi-neering profession, welcomed ten new donors. William Adams,Thomas M. Barlow, Marc W. Goldsmith, Loretta McHugh,Michael F. Molnar, Ozden O. Ochoa, Craig D. Redding, VictoriaA. Rockwell, and Robert T. (and Kay) Simmons were honoredat the 2008 ASME Mechanical Engineering Congress inBoston; one donor requested anonymity.
Key ActivitiesThe ASME Foundation is proud to nurture the future ofmechanical and multidisciplinary engineering by granting schol-arships and loans to students pursuing their engineering edu-cations. During FY09, the Foundation awarded a total of$154,600 in graduate and undergraduate scholarships, whichassisted 47 students in reaching their educational goals. Thetotal includes recipients of ASME Gratitude Scholarships, sonamed in appreciation of 201 donors who contributed to a spe-cial scholarship fund in early 2009.
Four awards of $5,000 were presented as teaching fellowshipsto graduate students. In addition, the ASME-ASME AuxiliaryFIRST (For the Inspiration and Recognition of Science and
Technology) Scholarship Fund provided $5,000 college schol-arships to each of three high school seniors who were activeon 2008 FIRST teams. The ASME Centers Sector providedfinancial support in this area.
Low-interest student loans in the amount of $364,775 weremade to 124 students enrolled in engineering curricula aroundthe country.
Many programs throughout ASME reflect the Foundation’sinterests in serving the present. With funds from the endow-ment established through the previous capital campaign, WorldClass… By Design and from the Leighton Orr Fund, the Foun-dation approved funding totaling $363,000 for the followinggrants:
ASME Federal Fellows Program $ 66,000E-Nano Library: Tools for Tomorrow’s Workforce $100,000Vision 2030 $ 47,000Mechanical Engineering A to Z $ 50,000ASME IShow 2009 $100,000
The ASME Honors and Awards program is recognized world-wide for honoring excellence in engineering. Through interestearned on named endowments established with the Founda-tion for the purpose of bestowing these honors and awards,
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ASME President Thomas M. Barlow congratulates two of this year’sASME-ASME Auxiliary FIRST Scholarship winners while attending the2009 FIRST competition held at the Georgia Dome in Atlanta in April.Levi Leppke (left) of Midland, Va. is attending LeTourneau University inLongfellow, Tex., and Samuel Pace Nalbone (right) of Allentown, N.J. isattending Carnegie Mellon University, Pittsburgh, Pa. Each studentreceived a $5,000 scholarship towards their engineering education.
Terry E. Shoup (right), newly-elected chair of the Board of Directors ofThe ASME Foundation for FY10, welcomes Loretta McHugh, one of tennew donors inducted into The Archimedes Club. Induction took place atThe Archimedes Club reception held at the 2008 ASME Congress inBoston.
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the Foundation supported the ASME Honors Assembly at the2008 Congress in the amount of $230,000.
The Foundation also provided funding for the Ralph Coats RoeLecture and Luncheon held at the 2009 ASME Annual Meet-ing in Palm Desert, Calif. Bonnie J. Dunbar, president and chiefexecutive officer of the Museum of Flight, Seattle, Wash., andveteran of five NASA space flights, was the lecturer.
New OfficersThe board elected Terry E. Shoup and Ward O. Winer as chairand vice chair, respectively, for FY10. New board membersinclude Richard J. Goldstein, William F. Mitchell and Victoria A.Rockwell.
Warren Leonard, executive director, Judith Kearney, director ofdevelopment, Marcelle Austin, development associate andRuthAnn Bigley, coordinator, support the Board of Directorsand other volunteers.
In FY09, The ASME Foundation continued its legacy ofexpanding the culture of philanthropy throughout the Societyby raising money and extending development services to theSociety. Through its varied programs, the Foundation nurturesthe future of mechanical engineering, helping to make theglobal community a better place for all.
ASME honors and awards recognize a wide variety of accomplishments and contributions made by outstanding individuals toengineering education, literature and industry. The ASME Honors and Awards Program is funded through the ASME Foundationby individual award and endowment funds. In 2008, ten individuals participated in the ASME Honors Assembly gala event heldat the ASME Congress in Boston.
The ASME Foundation provides funding for the Society'sRalph Coats Roe Lecture and Luncheon. Bonnie J. Dunbar(center), president and CEO of the Museum of Flight,Seattle, Wash., and former NASA astronaut was the featuredlecturer in 2009 and is the recipient of The Ralph Coats RoeMedal. Established in 1972, the award recognizes individualswho have made outstanding contributions toward a betterpublic understanding and appreciation of the engineer'sworth to contemporary society. The ASME Heroes ofEngineering series, sponsored by The ASME Foundation,featured Dr. Dunbar in one of its comics geared towards K-12 students. Photo left K. Keith Roe, member of theASME Board of Governors; photo right Warren Leonard,managing director, ASME Governance.
The Kenneth Andrew Roe Scholarship 1 Award at $10,000Samuel Wight, Washington University in St.
LouisThe Garland Duncan Scholarship
2 Awards at $3,000Amber Lubbers, Texas Tech UniversityGina Zak, University of Illinois at Urbana-
ChampaignThe American Electric PowerScholarship
1 Award at $1,500Ian McDaniel, University of Texas at Tyler
The William J. and Marijane E. AdamsJr. Scholarship
1 Award at $2,000Jay Smith, California Polytechnic State
UniversityThe Frank and Faye MasinoScholarship
1 Award at $1,500Robert Gabrielse, Marquette University
The ASME Foundation Scholarship11 Awards at $1,500Rashid Ali, University of Engineering &
Technology, Lahore, PakistanKibanou Bodjona, University of the District of
ColumbiaGreg Eisenmann, University of IllinoisWayne Evans, Rochester Institute of
TechnologyAnkush Gupta, Indian Institute of Technology,
IIT Roorkee, IndiaLara Killingsworth, Oklahoma Christian
UniversityChristine Lowry, Rochester Institute of
TechnologyRonhoward McNeil, Prairie View A&M
UniversitySimbarashe Nyika, University of Missouri-
ColumbiaMichael Palodichuk, Gonzaga UniversitySusanna Young, Arizona State University
The ASME Foundation GratitudeScholarship
13 Awards at $2,000Morgan Boes, F.W. Olin College of EngineeringSwetaprovo Chaudhuri, University of
ConnecticutKristin Fuchs, Bucknell University Dell Hammond, Idaho State UniversityHeather Poiry, University of California, MercedPhillip Prueter, University of AkronDaniel Raynes, Virginia TechKeun Ryn, Texas A&M UniversityDavid Stamp, F. W. Olin College of EngineeringJeremy Tucker, Portland State University
Amir Danesh-Yazdi, City College of New YorkLaura Zeleznicky, University of HartfordAlex Zelhofer, Milwaukee School of
Engineering
ASME Power Division Scholarship1 Award at $2,400Samuel Brinton, Kansas State University
The Bruce J. Heim Foundation(Graduate) Scholarship
1 Award at $1,500Margaret Anderson, Rochester Institute of
Technology
Allen F. Rhodes Memorial Scholarship1 Award at $1,500Yehia Omar, Texas A&M University
International Gas Turbine Institute(IGTI) Scholarship
1 Award at $4,000Tejas Chafekar, Birla Institute of Technology
and Science-Pilani
ASME/Virginia Tech MemorialScholarship
1 award at $2,500Justin Klein, Virginia Tech College of
Engineering
2008 Clarke Scholarship (awardedjointly with the ASME Auxiliary)
$6,000 awards to each of ten universitiesfor 2008 freshmanMatthew C. Travis, Oral Roberts UniversityRachel Connon, Milwaukee School of
EngineeringBrian Ragenoski, Milwaukee School of
EngineeringAndrew Wyler, Milwaukee School of
EngineeringJoshua Dorsey, Virginia Commonwealth
UniversityRoss Donovan, Virginia Commonwealth
UniversityJacob Hammack, Virginia Commonwealth
UniversityGarrett Howe, Virginia Commonwealth
UniversityAndrew Kilgore, Virginia Commonwealth
UniversityMax Lopez, Virginia Commonwealth UniversityAustin W. Short, Baylor UniversityDaniel Thomasson, Baylor UniversityAdam P. Wagner, Baylor UniversityNathanael Itescu, Drexel UniversityIan M. Lacey, Drexel UniversityKenneth J. Leibig, Drexel UniversityMatthew Hicks, South Dakota School of Mines
and TechnologyJordan Krell, South Dakota School of Mines
and Technology
Laura Lingschelt, South Dakota School ofMines and Technology
Brian Bonadies, University of Maryland,Baltimore County
Blake R. Hubbell, University of Maryland,Baltimore County
Mike Thompson, University of Maryland,Baltimore County
Collin Jackson, University of ArkansasDavid Rockwell Long, University of ArkansasLogan Stover, University of ArkansasChristian Beckmann, New Jersey Institute of
TechnologyBayan Lahham, New Jersey Institute of
TechnologyJaydeep Patel, New Jersey Institute of
TechnologyRaul Hernandez-Alaniz, Universidad de
GuanajuatoSandra-Eloisa Chavez-Alfaro, Universidad de
GuanajuatoRicardo Ortega-Alvarez, Universidad de
GuanajuatoAgustn Ortega-Arredondo, Universidad de
GuanajuatoFernando Cano-Banda, Universidad de
GuanajuatoJaime-Gustavo Sandoval-Castillo, Universidad
de GuanajuatoCesar-Luis Murrieta-Chagollan, Universidad de
GuanajuatoJose-Luis Araiza-Espinoza, Universidad de
GuanajuatoJorge-Alejandro Martinez-Fuentes, Universidad
de GuanajuatoLuis-Alberto Sanchez-Galindo, Universidad de
GuanajuatoJose-Roberto Vargas-Jaramillo, Universidad de
GuanajuatoOscar-Alejandro Lopez-Nuñez, Universidad de
GuanajuatoDavid-Alejandro Elvira-Ortiz, Universidad de
GuanajuatoCarlos-Armando Lara-Velazquez, Universidad
de GuanajuatoSergio-Alberto Pedroza-Villegas, Universidad
de GuanajuatoDiego-Jesus Mendoza-Zendejas, Universidad
de Guanajuato
ASME-ASME Auxiliary FIRST ClarkeScholarship
3 awards at $5,000 each
Katelynne R. Baier, Centerburg High School,Centerburg, Ohio
Levi Leppke, Homeschool, Midland, VirginiaSamuel P. Nalbone, Allentown High School,
Allentown, New Jersey
S C H O L A R S H I P S
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CENTURION CLUB$1,000 and aboveThe ASME Matching Scholarship
GiftP.J. “Jim” Adam, Jr.Merle and Virgil R. CarterJon A. EbacherRoger EichhornWalter GarrisonThomas G. LoughlinJack S. ParkerArthur Schnacke
BENEFACTORS$500 - $999Kenneth R. BalkeyStephen CrandallVern EriksenRichard R. GriggPatricia M. HenryTed LarsenWarren R. LeonardK. Keith RoeSusan H. SkempMichael K. Weis
PATRONS$250 -$499Stuart BellAlbert E. Brion, Jr.Morley FarquarRandal FreyDavid P. HardyMargaret J. LudoweseKim MastalioDavid SoukupDonald N. Zwiep
SPONSORS$100-$249Robert L. AllmanSunao AokiHarry ArmenJames L. BaconJohn Behen IIIDavid and Lois BeldenDavid Lee BergerSidney BernsenPrem and Suraaj BhatiaKenneth L. BickhamRuthAnn BigleyRay M. BowenThomas E. BowmanKenneth F. Brandon
H.E. ButtelmannEd CancillaMark Canty, Jr.Anthony J. Cappucci, Jr.Howard J. CarpenterYu ChenTed A. CheuvrontJames K. ColeBruce ConlinRobert W. CornellDonald CouchmanWilliam CraftAllen J. CurtisErnest DamanWilliam J. D’AntonioRobert W. DaviesEllison DavisonKenneth A. DeGhettoBurt DichtEdgar DoehlerRobert M. Drake, Jr.Philip DuganMilton EllisJohn F. ElterJames L. EverettJohn F. FastabendF. Joseph FischerToshio FujitoS.M. GantiRoger J. GendronPaul J. GlasgowJohn R. GregorThomas D. GreiderGeorge B. GrimPhilip GrossweilerFrederick J. HanzalekGeorge N. HatsopoulosMichael B. HayesFrank W. HenriksonRobert L. HillRolf HoexterJohn F. HornKenneth C. HudsonRichard L. HuntCharles J. HurstJames R. HuttonWarren E. IbeleGeorge T. IkedaRobert G. JeffersBruce JohnsonMarcus C. JohnsonWilfred JonesDaniel C. Kiland
Charles KippenhanMichael B. KjetsaaFred KohlossSteven KushnickLee LangstonTed LarsenChuck LarsonRichard LaudenatConnie LaustenThomas LazearDona Marie LeeByron LeeStephen LehrmanJohn F. LeslieWilliam J. LindbladTom J. LoveGerard G. LowenWalter M. MacleanGary E. MartinDavid S. MayoRichard L. McCoyDuncan R. Mc LeishJohn MihmHamilton D. MirandaDonna and Jim MoodyJohn Morrow, Jr.C. D. Mote, Jr.Stanley MozdaRichard A. MulfordIsaac MurrayTed NicholasSigna and Willard NottPaul OliverBob PageRichard PawligerBruce R. PenningtonThomas PerryTrinh PhamMartin L. PomerantzR. E. ReaderClayton W. RobsonW. Melvyn RoquemoreBernard RossJ. William ScherG. A. SchurmanM.E. ShankRobert SimmonsArthur SkillmanRussell A. SmithJonathan C. SommersGino SovranHolly StaffanGeorge B. Stanton, Jr.
Donald E. SteeleWilbur W. StephensRalph E. StineLee StrodtmanSalvatore SuteraKazuhiko SuzukiPhil SwansonJohn A. TalbottCharles J. TateosianHarold L. TaylorRobert Teece, Sr.David H. ThompsonRobert ThresherLeroy O. TomlinsonRoy P. TrowbridgeLawrence TrupoJudy M. VanceCharles O. Velzy William E. WagnerGilbert WaldmanT. Urling WalkerJohn C. WalterA.G. Walton, Jr.Ernest W. Weaver, Jr.Peter WeihsmannJ.T. WeissenburgerDaniel WhitneyJack P. WiegandBrian WillRichard B. WilsonJohn P. WilsonHelmut WolfSidney Woodcock
FRIENDS$5 to $99Jake AdkinsJohn AlbanesMatthew AlvarezCourtney D. AlveyMarcelle AustinClyde H. BabcockRichard S. BainRobert BalinskasAllen Bashore, Sr.Richard D. BeardRoyce BeckettTheodore BeebeR.S. Beeler Art BendeliusGeorge J. Bergdolt, Jr.Gerald J. BibeaultAndrew Blelloch
HONOR ROLL OF DONORS
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CONTR I B UTORS TO TH E ASM E FOU N DATION AN N UAL APPEAL
Rose and Robert W. BosseAndrew J. BoyesFrank L. BradleyJ. BreitlingTheodore G. BrnaMyron B. BrookfieldBernard BrunegraffJ.M. BurnsRichard W. BurowAlberto A. CalderaroWilliam G. CarlsonKenneth CartwrightWiley M. CauthenRobert S. ChaseJohn C. ChatoHoward R. CopelandJohn R. CurreriLouise F. Davis Richard E. DavisWilliam De FotisVince DilworthCharles W. DodsonHarry DoyleCassandra DugalDaniel P. ElliottEddie FarmerRobert FerenczBurrell FisherArthur FosterR. Bruce FreasHenry J. GalloJack GanskyFrank GerchowBernd S. GivonJames G. GlennGeorge J. GreguleS.F. GuggenheimFrank M. Gunby, Jr.W.E. GunsonCarl W. HallStanley HalpersonGeorge C. HanleyDennis F. Hasson Robert HeadDwight P. HeathRussell F. HenkeHarold B.R. HerstedtRobert J. HessGerard R. HillenbrandRobert HitchJackson W. HollisMelvin Holubar
Fredrick J. HopenwasserPeter HrycakThomas A. HunterBarry HymanJennifer JewersHarsh JoshiMark A. JudsSteve KaercherGuido KarcherJudith P. KearneyOrron E. KeeJohn T. Kephart, Jr.Larry KielasaRhyn KimKenneth R. KlemmerHenry KoenigAlan KormanZbigniew KowalskiWilliam KrewsonThomas J. KuehlJoseph LashDavid LewisHenry LittlePaul J. LombardiGeorge M. LucasMichael LubranoRobert E. LunaHugh MahaffyJohn MasseyAl MatiukLee A. MatschW.T. McCroskeyDonald M. MacdonaldMarshall McDonaldJohn McDougallJerome MendelWilliam MeyerJohn MihmEdward MitchellCharles G. MooreKaren MooreDoug MorisonRobert P. MottDonald NeithercutPeter G. NocellaSevgin OktayRoger D. OllemanPhilip P. O’NeillMartin PaytonFrank E. PeckJohn D. PellegrinJohn E. Perrault
Albert C. PetersonAntonia PortelaR.C. PotterL. Douglas PowerDieter RallDonald G. RichardsonJohn W. RockensiesL.E. RootFerdinand RosaDavid A. RossiWilfred T. RouleauWilliam RowenJohn RowleyErnest F. RuppeJames R. RussellJames B. RussellRaymond J. SacksRalph A. SalleeRobert L. San MartinAlfred G. SchoebrunnAleck W. SerkizLarry Sevenker E. Joseph Sharkey, Jr.Akira ShimaJohn E. SirmalisFernando SistoFrank D. SkinnerEarl B. SmithFrank SmollonDavid G. SpokelyA.V. SrinivasanBeno SternlichtRobert StiegRichard C. StoefflerRichard Stonage, Jr.Robert H. StoneRichard A. SturleyHenry L. SundbergGeorge SuttonG.F. SwainsonGeorge W. SwiftLloyd TaylorJohn T. TielkingLawrence C. TobiasPaul D. VeceraJohn VondrasAnthony Weasler IIRobert M. Welch Ellwood WerryJim WhitesideBlair L. WildermuthWilbur Wilhelm
Dean S. WilliamsRichard E. WillisRobert E. WinklerRichard T. WiseCharles K. WisselDayton WittkeLee E. WrightRobert WurtzD.L. YeagerStanley YokellRonald YoungLeonard P. Zick
MEMORIALCONTRIBUTIONSIn Memory of Andrew S.
GreenLilias E. Green
Corporate Matching Gifts On Behalf of Daniel KilandBP Foundation, Inc.On Behalf of Suraaj BhatiaThe Caterpillar Foundation
ENGINEERING THEGREATER GOODCAMPAIGNBabcock Power, Inc.Thomas M. BarlowArthur BerglesSusan Ipri BrownJames W. CoakerErnest DamanDuke Energy Margaret and John F. ElterDonald FrikkenMarc W. GoldsmithBarbara and Richard GoldsteinAmos E. HoltJudith P. KearneyWarren R. LeonardJohn C. MihmRobert T. SimmonsTerry E. Shoup
Memorial Contributions Inmemory of Harold Hering
Doris B. Hutchings
Corporate Matching Gifts On Behalf of Philip
GrossweilerExxonMobil Foundation
HONOR ROLL OF DONORS
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CONTI N U ED
Ward S. and Edith Jacob Award
A. Moutsoglou
Bruce J. Heim Scholarship
Bruce J. Heim Foundation
Joe Falcon Award Fund
Joseph A. Falcon
Von Flue Award
Bobby L. Green
ASME Milton C. Shaw Medal Endowment
Amit Bagchi
Christopher A. Brown
Dr. R. H. (Bob) Brown
Abhijit Chandra
George Chryssolouris
David Dornfeld
Thomas N. Farris
Steve Hayashi
Uwe Heisel
Robert Hocken
Yong Huang
I.S. Jawahir
Ming C. Leu
D. F.F. Ling
Richard P. McDermott
S. N. Melkote
Araya Osamu
Devdas M. Pai
Shivakumar Raman
W.S. Sampath
Anil Srivastava
Soundar R. Tirupatikumara
Noritsugu Umehara
Michael Vogt
Amitabh Vyas
Kuo K. Wang
Roland Weill
Shuangye Wu
Kazuo Yamazaki
AWARD AND SCHOLARSH I P DONORS
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JOHN F. ELTERCHAIR OF THE BOARD
Executive Director Center for Sustainable Ecosystem
NanotechnologiesUniversity at Albany
THOMAS D. PESTORIUSVICE CHAIR
Chief Executive Officer andPresident H&P, Inc.
THOMAS M. BARLOWPRESIDENT, ASME
JAMES W. COAKERPrincipal
Coaker and Company, PC
LEE S. LANGSTONProfessor Emeritus
University of Connecticut
THOMAS G. LOUGHLINExecutive Director, ASME
REGIS A. MATZIESenior Vice President
Chief Technology OfficerWestinghouse Electric Company,
LLC
ROBERT E. NICKELLPresident
Applied Science and TechnologyInc.
TERRY E. SHOUPProfessor
Santa Clara University
SUSAN H. SKEMPExecutive Director
Center for Ocean EnergyTechnology
Florida Atlantic University
JOHN A. SWANSONPresident
Swanson Analysis Services, Inc.
NINA WEBB
ASME AUXILIARY
WARD O. WINER
Chair
School of Mechanical EngineeringGeorgia Institute of Technology
CHARLA K. WISE
Vice President, BusinessOperations
Lockheed Martin Associates
HONORARY MEMBERS
K. KEITH ROE
CHAIR EMERITUS
Chairman and PresidentBurns and Roe Enterprises, Inc.
LYNDEN F. DAVIS
ARCHIMEDES CLUB LIAISON
STAFF
JUDITH P. KEARNEY
SECRETARY
Director of DevelopmentThe ASME Foundation
WARREN R. LEONARD
Executive DirectorThe ASME Foundation
MICHAEL T. WEIS
TREASURER
The ASME Foundation
THE ASME FOUNDATION BOARD OF DIRECTORS 2008-2009
THE ASME FOUNDATION ARCHIMEDES CLUB
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C A T E G O R I E S Planned Gift Face Value Amount
P L A T I N U M $1,000,000 and above
G O L D $500,000 to $999,999
S I L V E R $100,000 to $499,999
B R O N Z E $25,000 to $99,999
M E M B E R All Planned Gifts up to $24,999
A R C H I M E D E S C L U B M E M B E R S H I P
The Archimedes Club recognizes foresighted members and friends of ASME who demonstrate their commitmentto the Society and to the future of mechanical engineering through an estate provision or other planned gift toThe ASME Foundation.
The generosity of the Archimedes Club places an enduring imprint on ASME. Theirs is an expression of faith inour mission to further the goals of the mechanical engineering community through student scholarships, educa-tional grants, and awards recognizing service and achievement.
P L A T I N U MMargaret and Leighton Orr
G O L DJohn A. SwansonMary Evans Stowell Thompson
S I L V E RP.J. “Jim” Adam, Jr.Robert J. Cepluch Lynden F. Davis Nancy and Roland Fitzroy Richard J. GoldsteinSt. Clair F. Luzzi, Sr. Carol and Allen F. Rhodes K. Keith Roe Linda Kloeblen Tang and Thomas C. Tang Roy P. Trowbridge
B R O N Z EMahesh C. Aggarwal Irma and Robert A. Bennett RuthAnn BigleyMerle and Virgil R. Carter Rose and Samuel L. Collier Charles Concordia Falcon Family Trust Marilyn and Willis W. Gardner Francesca and Joe M. Holm Patricia and Duane P. Jordan Warren R. Leonard
In Memory of Warren Leonard, Sr. Sonia and Raj K. ManchandaThomas G. Loughlin
In Memory of Julius A. Naab Susan H. Skemp Chor W. Tan
Harvey A. Wagner George C. WiedersumJames D. Woodburn Robert Wurtz
M E M B E RThomas M. BarlowElizabeth C. Barna David L. BeldenBetty L. BowersoxJames W. Coaker John J. Corcoran John F. Elter Alma Martinez FallonDonald R. FrikkenMarc W. GoldsmithPhilip W. Hamilton Henry M. Koenig June Ling E. Roland Maki The Estate of James McHugh Loretta C. McHughMagda and Michael B. Michaud John C. MihmRobert N. PangbornVictoria A. RockwellByron G. Schieber, Jr. Betsy and Terry E. Shoup Kathryne and Robert T. SimmonsPamela and David J. Soukup Ruthy and Keith B. ThayerNina and Tal Webb Myrna and Sam Y. Zamrik
P O S T H U M O U S LYD I S T I N G U I S H E DWillis Thompson
2008-2009 PLANNEDGIVING ADVISORY
COMMITTEE
MEMBERSJohn C. Mihm, Chair
Betty L. BowersoxLynden F. DavisDuane P. JordanJoseph A. Falcon
K. Keith RoeTerry E. Shoup
Susan H. Skemp
ASMEJudith P. Kearney
Warren R. Leonard
THE ASME FOUNDATION
ASME MEDALIST Nam Pyo SuhMassachusetts Institute of Technology
BERGLES-ROHSENOW YOUNGINVESTIGATOR AWARD IN HEATTRANSFERWilliam P. KingUniversity of Illinois, Urbana-Champaign
PER BRUEL GOLD MEDAL Earl G. WilliamsNaval Research Laboratory
EDWIN F. CHURCH MEDALWilbur J. (Webb) MarnerJet Propulsion Laboratory
DANIEL C. DRUCKER MEDALJames R. BarberUniversity of Michigan
THOMAS A. EDISON PATENTAWARDAlex J. SeverinskyFuelco LLC
WILLIAM T. ENNORMANUFACTURINGTECHNOLOGY MEDAL OFASME/SMEJun NiUniversity of Michigan
FLUIDS ENGINEERING AWARDRonald J. AdrianArizona State University
Y.C. FUNG YOUNGINVESTIGATOR AWARDRobert L. MauckUniversity of Pennsylvania
MELVIN R. GREEN CODES ANDSTANDARDS MEDALLouis E. Hayden Jr.Lafayette College
HEAT TRANSFER MEMORIALAWARD
SCIENCE
Richard H. PletcherIowa State University
HEAT TRANSFER MEMORIALAWARD
ART
Jong H. KimElectric Power Research Institute
HEAT TRANSFER MEMORIALAWARD
GENERAL
Cristina H. AmonUniversity of Toronto
MAYO D. HERSEY AWARDRichard F. SalantGeorgia Institute of Technology Patrick J. Higgins
Jayaraman RajaUniversity of North Carolina
SOICHIRO HONDA MEDALDavid F. MerrionDavid F. Merrion LLC
HONORARY MEMBERS David L. BeldenUnited Engineering FoundationCharles M. VestMassachusetts Institute of TechnologyWinfred M. PhillipsUniversity of Florida William A. WeiblenPratt & Whitney – Retired
INTERNAL COMBUSTIONENGINE AWARDRonald D. MatthewsUniversity of Texas
ASME JOHNSON & JOHNSONCONSUMER COMPANIES, INC.MEDALRichmond Area Program forMinorities in Engineering Inc.Virginia State University
WARNER T. KOITER MEDALStelios KyriakidesThe University of Texas
ROBERT E. KOSKI MEDALJan Ove PalmbergLinkoping University
FRANK KREITH ENERGYAWARDRobert H. SocolowPrinceton University
BERNARD F. LANGER NUCLEARCODES AND STANDARDSAWARDMary DrouinUnited States Nuclear RegulatoryCommission
GUSTUS L. LARSON MEMORIALAWARDAnna G. StefanopoulouUniversity of Michigan
H. R. LISSNER MEDALThomas P. AndriacchiStanford University
MACHINE DESIGN AWARDJ. Michael McCarthyUniversity of California, Irvine
CHARLES T. MAIN STUDENTSECTION AWARD
GOLD
Brianne Marie WilburneThe Pennsylvania State University
SILVER
Eduardo Jose BarrientosUniversidad Simón Bolívar
M. EUGENE MERCHANTMANUFACTURING MEDAL OFASME/SMEPatrick A. McKeownCranfield University
VAN C. MOW MEDALMichael S. SacksUniversity of Pittsburgh
NADAI MEDAL Lambert Ben FreundBrown University
BURT L. NEWKIRK AWARDRobert W. CarpickUniversity of Pennsylvania
HONORS AND AWARD REC I P I ENTS
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OLD GUARD EARLY CAREERAWARDKalan R. GuileyThe Boeing Company
RUFUS OLDENBURGER MEDALNeville J. HoganMassachusetts Institute of Technology
PERFORMANCE TEST CODESSteven P. NusplBabcock & Wilcox
PI TAU SIGMA GOLD MEDALA. John HartUniversity of Michigan
JAMES HARRY POTTER GOLDMEDALClaus BorgnakkeUniversity of Michigan
PRESSURE VESSEL AND PIPINGMEDALCharles Becht IV Becht Engineering Company
DIXY LEE RAY AWARDRobert G. WattsTulane University
RALPH COATS ROE MEDALBonnie J. DunbarSeattle Museum of Flight
CHARLES RUSS RICHARDSMEMORIAL AWARDEdwin Daniel Hirleman, Jr.Purdue University
SAFETY CODES AND STANDARDSMEDALMichael C. PolagyeFM Global
R. TOM SAWYER AWARDMichael G. DunnThe Ohio State University
BEN C. SPARKS MEDALScott G. DanielsonArizona State University
SPIRIT OF ST. LOUIS MEDALPaul M. BevilaquaLockheed Martin Aeronautics Company
STUDENT SECTION ADVISORAWARDTimothy C. ScottUniversity of Virginia
J. HALL TAYLOR MEDALOwen F. HeddenCodes & Standards Consulting
ROBERT HENRY THURSTONLECTURE AWARDHuajian GaoBrown University
TIMOSHENKO MEDALZdenek P. BazantNorthwestern University
YERAM S. TOULOUKIAN AWARDAndreas MandelisUniversity of Toronto Koichi WatanabeKeio University
GEORGE WESTINGHOUSE MEDAL
GOLD
Essam E. KhalilCairo University
SILVER
Somrat KerdsuwanKing Mongkut University of Technology,North Bangkok
HENRY R. WORTHINGTON MEDALManfred RautenbergUniversity of Hannover, Germany
BLACKALL MACHINE TOOL &GAGE AWARDRobert J. HockenUniversity of North Carolina, CharlotteJimmie A. MillerUniversity of North Carolina, CharlotteK. Scott SmithUniversity of North Carolina, CharlotteBethany A. WoodyInsitutec
GAS TURBINE AWARDTim RiceALSTOMDavid Bell ALSTOM Gurnam SinghALSTOM
MELVILLE MEDALPaul CantinGeneral Electric AviationDavid ChristensenGeneral Electric Aircraft EnginesDavid GutzGeneral Electric Aircraft EnginesPeter N. Szucs General Electric Aircraft EnginesAspi R WadiaGE AviationManuj DhingraGeorgia Institute of TechnologyJames ArmorGeorgia Institute of Technology J.V.R. PrasadGeorgia Institute of Technology Yedidia NeumeierGeorgia Institute of Technology
PRIME MOVERS AWARDRobert Brandt, Jr.Eastern Instruments
WORCESTER REED WARNERMEDALDavid G. LilleyOklahoma State University
ARTHUR L. WILLISTON MEDAL
WINNER
Michael SimmonUnited States Military Academy
SECOND
Tessa Rae NottUnited States Coast Guard Academy
THIRD
Elizabeth BetterbedUnited States Military Academy
HONORS AND AWARD REC I P I ENTS
11
CONTI N U ED
JOHN F. ELTER
CHAIR OF THE BOARD
Executive Director Center for Sustainable Ecosystem
NanotechnologiesUniversity at Albany
K. KEITH ROE
CHAIR EMERITUS
Chairman and PresidentBurns and Roe Enterprises, Inc.
P.J. “JIM” ADAM, JR.
CHAIR EMERITUS
Black & Veatch Holding Company
ADALBERTO ALFONSO, JR.
Vice PresidentFlorida Power & Light Company
DAVID L. BELDEN
EXECUTIVE DIRECTOR EMERITUS
ASME
STUART R. BELL
Dean of Engineering University of Kansas
JACK T. COFFMAN
Senior Vice PresidentOklahoma Gas and Electric
D. EDWARD CROW
Distinguished Professor-in-Residence
University of Connecticut
NANCY D. FITZROY
Retired General Electric
WALTER R. GARRISON
Chairman CDI Corporation
ROBERT M. GUEZURAGA
Retired Medtronic, Inc.
GEORGE N. HATSOPOULOS
Chairman EmeritusThermo Electron Corporation
JOSEPH KOVACH
Vice PresidentEngineering & Manufacturing
TechnologyHydraulic GroupParker Hannifin Corporation
ALLAN E. KUKOSKI
Senior Vice President Engineering
Hitachi Power Systems
THOMAS G. LOUGHLIN
Executive DirectorASME
KIM I. MASTALIO
PresidentEnergy Services DivisionBlack & Veatch Corporation
JOHN C. MIHM
PresidentJCM Consulting Technologies, Inc.
C. DAN MOTE, JR.
President University of Maryland
WINFRED M. PHILLIPS
Vice President for Research University of Florida
MICHAEL RENCHECK
Senior Vice PresidentEngineering, Technical and
Environmental ServicesAmerican Electric Power Service
DAVID R. SMITH
Director, Production SystemsEngineering and Technology
Eastman Kodak Company
RICHARD H. STANLEY
ChairStanley Group
JOHN A. SWANSON
PresidentSwanson Analysis Services, Inc.
ROY P. TROWBRIDGE
Retired General Motors Corporation
WARD O. WINER
ChairSchool of Mechanical EngineeringGeorgia Institute of Technology
JAMES F. WOOD
President and Chief ExecutiveOfficer
Babcock Power Inc.
CHARLES L. WU
Director, Manufacturingand Vehicle Design
Ford Motor Company
WARREN R. LEONARD
Executive DirectorThe ASME Foundation
THE ASME FOUNDATION BOARD OF TRUSTEES 2008-2009
12
F INANC IAL S TATEMENTS
STATEMENT OF ACTIVITIES
Year ended June 30, 2009(With Comparative Totals for June 30, 2008) Unrestricted
Temporarilyrestricted
Permanentlyrestricted
2009Total
Operating revenueContributions $ 221,583 $ 314,381 $ 107,750 $ 643,714 $ 2,593,323 Interest and dividends, net ofinvestment fees of $56,563 in2009 and $80,608 in 2008 239,470 365,068 54,514 659,052 642,152
Net assets released from restrictions 449,524 (449,524) — — —Total operating revenue 910,577 229,925 162,264 1,302,766 3,235,475
Operating expenses (note 7)Grants 242,678 — — 242,678 165,743Contributions to ASME programs (note 3) 189,171 — — 189,171 195,000
Scholarships, awards, and honoraria 346,750 — — 346,750 295,670 Development office salaries and benefits (note 3) 235,496 — — 235,496 216,248
Medals, plaques, and certificates 58,120 — — 58,120 59,564 Occupancy and administration (note 3) 88,954 — — 88,954 111,665 Professional and consulting fees 18,797 — — 18,797 32,623 Reproduction, stationery, and supplies 12,217 — — 12,217 18,909 Travel, postage, and other 109,057 — — 109,057 102,935
Total operating expenses 1,301,240 — — 1,301,240 1,198,357 Excess (Deficit) of operating revenue over operating expenses (390,663) 229,925 162,264 1,526 2,037,118
Nonoperating activityRealized/unrealized loss on investments and split interest agreements (note 4) (1,988,024) (2,483,269) (1,467) (4,472,760) (1,963,042)
(Decrease)Increase in net assets (2,378,687) (2,253,344) 160,797 (4,471,234) 74,076Net assets at beginning of year 10,116,948 8,174,325 4,312,958 22,604,231 22,530,155 Net assets at end of year $7,738,261 $5,920,981 $4,473,755 $18,132,997 $22,604,231
The Board of Directors
The ASME Foundation, Inc.:We have audited the accompanying statement of financial position ofThe ASME Foundation, Inc. (the “Foundation”) as of June 30, 2009,and the related statements of activities and cash flows for the yearthen ended. These financial statements are the responsibility of theFoundation’s management. Our responsibility is to express an opinionon these financial statements based on our audit. The prior year sum-marized comparative information has been derived from the Founda-tion’s 2008 financial statements and, in our report dated September 8,2008, we expressed an unqualified opinion on those financial state-ments.We conducted our audit in accordance with auditing standards gen-erally accepted in the United States of America. Those standardsrequire that we plan and perform the audit to obtain reasonable assur-ance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements,assessing the accounting principles used and significant estimates
See accompanying notes to financial statements.
Independent Auditors’ Report
13
2008Total
continued on next page
STATEMENT OF FINANCIAL POSITIONAs of June 30, 2009(With Comparative Totals forJune 30, 2008) 2009 2008
AssetsCash (Note 8) $ 408,609 $ 679,994Student loans receivable, less allowance for doubtful accounts of$89,182 in 2009 and $100,219in 2008 1,176,435 1,104,024
Medal inventory 182,291 196,581Investments (Note 4) 16,813,956 21,145,251
Total assets $18,581,291 $23,125,850
Liabilities and Net AssetsLiabilities:Accounts payable and
accrued expenses $ 10,294 $ 24,107Annuities payable 438,000 497,512
Total liabilities 448,294 521,619Net assets:Unrestricted 7,738,261 10,116,948Temporarily restricted
(Notes 5 and 6) 5,920,981 8,174,325Permanently restricted
(Notes 5 and 6) 4,473,755 4,312,958Total net assets 18,132,997 22,604,231Total liabilities and net assets $18,581,291 $23,125,850
STATEMENT OF CASH FLOWSYear ended June 30, 2009(With Comparative Totals for June 30, 2008) 2009 2008
Cash flows from operating activities(Decrease) Increase in net assets $(4,471,234) $ 74,076Adjustments to reconcile (decrease) increase in net assets to net cashprovided (used in) operating activities:
Endowment contributions and interest and dividends required to be added topermanently restricted net assets (162,264) (1,167,348)
Bad debt (recapture)/expense (11,037) 12,334Change in the value of split
interest agreements 204,934 85,862Realized/unrealized loss
on investments 4,267,826 1,877,180 Changes in assets and liabilities:
Decrease (increase) in medal inventory 14,290 (37,092)
Decrease in accounts payable and accrued expenses (13,813) (9,324)
Loans issued to students (364,775) (365,657) Collection of loans fromstudents 303,401 243,977
Net cash (used in) provided by operating activities (232,672) 714,008
Cash flows from investing activitiesPurchases of units in the
investment pool of ASME (641,288) (1,377,558) Sales of units in the investment pool of ASME 499,823 180,035
Loss on sale of contributed securities — (4,820)Net cash used in investing activities (141,465) (1,202,343)
Cash flows from financing activitiesEndowment contributions and interest and dividends required to be added to permanently restricted net assets 162,264 1,167,348
Annuity payments (59,512) (58,947) Increase in annuities payable — 15,880
Net cash provided by financing activities 102,752 1,124,281
Net (decrease) increase in cash and cash equivalents (271,385) 635,946
Cash and cash equivalents at beginning of year 679,994 44,048
Cash and cash equivalents at end of year $ 408,609 $ 679,994
See accompanying notes to financial statements.
See accompanying notes to financial statements.
made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reason-able basis for our opinion.In our opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of The ASMEFoundation, Inc. as of June 30, 2009, and the changes in its netassets and its cash flows for the year then ended, in conformity withaccounting principles generally accepted in the United States ofAmerica.
New York, NYOctober 26, 2009
F INANC IAL S TATEMENTS
14
continued from previous page
15
F INANC IAL S TATEMENTS CONTI N U ED
The ASME Foundation, Inc. Notes to Financial Statements June 30, 2009(With Comparative Information for June 30, 2008)
1. Organization
The ASME Foundation, Inc. (the Foundation) was incorporated as a not-for-profit supporting organization on February 7, 1986 to promote the art,science, and practice of mechanical engineering throughout the worldand engage in activities which support The American Society Of Mechan-ical Engineers (“ASME”). The Foundation is affiliated with ASME, but notcontrolled by ASME. The Foundation is exempt from federal income taxesunder Section 501(c)(3) of the Internal Revenue Code.
The Foundation provides the following services:• Encourages and rewards outstanding achievement in mechanical
engineering by obtaining funds for the conferring of honors andawards on persons and organizations who or which have made sub-stantial contributions to the advancement of mechanical engineer-ing;
• Obtains funding and awards scholarships, grants, student loansand/or awards which support and expand career opportunities orprofessional growth in the field of mechanical engineering througheducation and research;
• Sponsors programs and projects such as lectures, seminars, andclinics which contribute to the continuing education and profession-al growth of practicing mechanical engineers; and
• Supports research in mechanical engineering and the rapid dissemi-nation of results throughout the community of mechanical engineers.
2. Summary of Significant Accounting Policies
Basis of AccountingThe financial statements have been prepared on the accrual basis ofaccounting.
Basis of PresentationThe Foundation’s net assets and revenue, expenses, gains, and losses areclassified based on the existence or absence of donor-imposed restric-tions. Accordingly, the net assets of the Foundation and changes thereinare classified and reported as follows:
Unrestricted net assets. Net assets that are not subject to donor-imposed stipulations.Temporarily restricted net assets. Net assets subject to donor-imposedstipulations that will be met either by actions of the Foundation and/orthe passage of time.Permanently restricted net assets. Net assets subject to donor-imposed stipulations that they be maintained permanently by theFoundation. Generally, the donors of these assets permit the Founda-tion to use all or part of the income earned on related investments forgeneral or specific purposes.Revenues are reported as increases in unrestricted net assets unless
their use is limited by donor-imposed restrictions. Expenses are reportedas decreases in unrestricted net assets. Gains and losses on investmentsand other assets or liabilities are reported as increases or decreases inunrestricted net assets unless their use is restricted by explicit donor stip-ulation or by law. Expirations of temporary restrictions on net assets (i.e.,
the donor-stipulated purpose has been fulfilled and/or the stipulated timeperiod has elapsed) are reported as net assets released from restrictions.
The Foundation adopted the Financial Accounting Standards Board(“FASB”) Staff Position (“FSP”) No. 117-1 (“FSP No. 117-1”) Endow-ment of Not-for-Profit Organizations: Net Asset Classification of FundsSubject to an Enacted Version of the Uniform Prudent Management ofInstitutional Funds Act (“UPMIFA”), and Enhanced Disclosures for allEndowment Funds (Note 6).
Student Loans ReceivableHistorically, the Foundation has not experienced significant bad debt loss-es. As of June 30, 2009 and 2008, the Foundation determined that anallowance for uncollectible accounts is necessary for Student Loansreceivable in the amount of $89,182 and $100,219, respectively. Thedetermination is based on its historical loss experience and considerationof the aging of the Student Loans receivable. Student Loans are written-off directly when all receivable collection efforts have been exhausted.
Medal InventoryMedal inventory is carried in the financial statements at the lower of cost,which is determined using the first-in, first-out method, or market.
Fair Value ImplementationEffective July 1, 2008, the Foundation adopted FASB Statement No. 157,Fair Value Measurements (SFAS No. 157), which provides a frameworkfor measuring fair value under generally accepted accounting principles.SFAS No. 157 applies to all financial instruments that are being measuredand reported on a fair value basis.
In February 2008, the FASB issued FASB Staff Position No. 157-2,Effective Date of FASB Statement No. 157, which permits a one-yeardeferral for the implementation of SFAS No. 157 with regard to nonfinan-cial assets and liabilities that are not recognized or disclosed at fair valuein the financial statements on a recurring basis. The Foundation effec-tively adopted SFAS No. 157 for the fiscal year beginning July 1, 2008,except for nonfinancial assets and nonfinancial liabilities that are recog-nized or disclosed at fair value in the financial statements on a nonrecur-ring basis for which delayed application is permitted until the fiscal yearbeginning July 1, 2009. The adoption of the remaining provisions ofSFAS No. 157 is not expected to have a material impact on the Founda-tion’s statements of financial position, activities or cash flows.
As defined in SFAS No. 157, fair value is the price that would bereceived to sell an asset or paid to transfer a liability in an orderly trans-action between market participants at the measurement date. In deter-mining fair value, the Foundation uses various methods including market,income and cost approaches. Based on these approaches, the Founda-tion often utilizes certain assumptions that market participants would usein pricing the asset or liability, including assumptions about risk and orthe risks inherent in the input to the valuation technique. These inputscan be readily observable, market corroborated, or generally unobserv-able inputs. The Foundation utilizes valuation techniques that maximizethe use of observable inputs and minimize the use of unobservableinputs. Based on the observability on the inputs used in the valuationtechniques the Foundation is required to provide the following informa-
16
F INANC IAL S TATEMENTS CONTI N U ED
Notes to Financial Statements June 30, 2009(With Comparative Information for June 30, 2008)
tion used to determine fair values. Financial assets and liabilities carriedat fair value will be classified and disclosed in one of the following threecategories:
• Level 1. Valuations for assets and liabilities traded in active exchangemarkets, such as the New York Stock Exchange. Level 1 alsoincludes U.S. Treasury and federal agency securities and federalagency mortgage-backed securities, which are traded by dealers orbrokers in active markets. Valuations are obtained from readily avail-able pricing sources for market transactions involving identicalassets or liabilities.
• Level 2. Valuations for assets and liabilities traded in less active deal-er or broker markets. Valuations are obtained from third-party pric-ing services for identical or similar assets or liabilities.
• Level 3. Valuations for assets and liabilities that are derived fromother valuation methodologies, including option pricing models, dis-counted cash flow models or similar techniques, and not based onmarket exchange, dealer, or broker-traded transactions. Level 3 val-uations incorporate certain assumptions and projections in deter-mining the fair value assigned to such assets or liabilities.
Split Interest AgreementsThe Foundation receives contributions in the form of charitable gift annu-ities and trusts for which the Foundation is the trustee. Such split interestagreements typically provide for payments to a donor or their beneficiary afixed amount for a specified period. The time period can be for the life ofthe donor or his/her designee. The assets received are recognized at fairvalue when received, and an annuity payable is recorded at the presentvalue of future cash flows expected to be paid to the donor or his/herdesignee based upon mortality tables and interest assumptions. Contribu-tion revenue is recognized as the difference between these two amounts.Contributions, investments, and a liability to annuitants are recognized bythe Foundation in the period in which the assets are donated. Adjust-ments to the annuity payable to reflect amortization of the discount andchanges in the life expectancy of the donor or his/her beneficiary are rec-ognized in the statement of activities.
ContributionsContributions, which include unconditional promises to give (pledges),are recognized as revenue in the period received.
Use of EstimatesThe preparation of financial statements in conformity with accounting prin-ciples generally accepted in the United States of America requires man-agement to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets andliabilities at the date of the financial statements and the reported amountsof revenues and expenses during the reporting period. Actual resultscould differ from those estimates.
Prior Year Comparative InformationThe financial statements are presented with 2008 summarized compara-tive information. With respect to the statement of activities, such prior yearinformation is presented in total, but not by net asset class. Such informa-tion does not include sufficient detail to constitute a presentation in con-
formity with accounting principles generally accepted in the United Statesof America. Accordingly, such information should be read in conjunctionwith the Foundation’s 2008 financial statements from which the summa-rized information was derived.
Subsequent EventsManagement has evaluated, for potential recognition and disclosure,events subsequent to the statement of financial position date throughOctober 26, 2009, the date the financial statements were available to beissued. No events have occurred subsequent to the statement of financialposition date through October 26, 2009 that would require adjustment toor disclosure in the financial statements.
3. Transactions with ASME
The Foundation has no employees and receives administrative supportfrom ASME. ASME charges the Foundation for Development office spaceand other services. In fiscal years 2009 and 2008, such charges totaled$340,000 and $327,913, respectively. In fiscal years 2009 and 2008, theFoundation made contributions of $189,171 and $195,000, respectively, toASME in support of honors and awards. In fiscal year 2008, ASME con-tributed $750,000 to the Foundation for the establishment of the Engi-neering the Greater Good Campaign.
4. Investments
Although available for operating purposes when necessary, the invest-ment portfolio is generally considered by management to be invested on along-term basis. The Foundation’s investments consist of an undividedinterest in the investment pool of ASME. ASME pooled investments con-sist of mutual funds, bonds and notes, common and preferred stock andmoney market funds. Investments of the pool are recorded at fair valuebased upon quoted market prices. Realized and unrealized gains andlosses are recognized as changes in net assets in the periods in whichthey occur, and interest and dividends are recognized as revenue in theperiod earned. At June 30, 2009 and 2008, the Foundation’s interest hada cost basis of $19,529,704 and $20,841,086, respectively, and a fair valueof $16,813,956 and $21,145,251, respectively. All investments are Level 1,quoted prices in active markets for identical assets.
Investments are subject to market volatility which could substantiallychange the carrying value in the near term.
During fiscal year 2008, the Foundation elected to change its methodfor calculating the cost basis of its investments from the average costaccounting method to specific lot method. Management believes thatthe change in methods, resulting in a change in recording realized/unre-alized gains and losses, is immaterial to the financial statements. Thechange had no effect on the change in the net assets.
The change in fair value of investments for the years ended June 30,2009 and 2008 consisted of the following:
2009 2008Net realized (loss) gain on
investment transactions $(1,452,847) $ 731,079Net unrealized loss (3,019,913) (2,694,121)
$(4,472,760) $(1,963,042)
The ASME Foundation, Inc.
7. Functional Expenses
The Foundation’s expenses, which are reported by natural classification inthe accompanying statement of activities, benefited the following programand supporting services for the years ended June 30, 2009 and 2008:
2009 2008Program services:Awards $ 451,178 $ 430,113 Grants 242,678 165,743 Scholarships and fellowships 239,651 207,084 Student loan program 6,722 20,955
940,229 823,895 Management and general 21,011 142,472Development 340,000 231,990
$1,301,240 $1,198,357
8. Concentration of Credit Risk
The Foundation maintains cash and cash equivalents in a major financialinstitution. Cash in banks are insured by the Federal Deposit InsuranceCorporation (“FDIC”). During 2009, FDIC insurance coverage for interestbearing accounts was increased from $100,000 to $250,000, expiringDecember 31, 2013. For non-interest bearing accounts, such coverage isunlimited to December 31, 2009. During the current fiscal year, the Foun-dation does not have cash balances in the financial institution in excess ofthe limit.
17
F INANC IAL S TATEMENTS CONTI N U ED
The ASME Foundation, Inc. Notes to Financial Statements June 30, 2009(With Comparative Information for June 30, 2008)
6. Endowment Net Assets
FSP No. 117-1 provides guidance on the net asset classification of donor-restricted endowment funds for a not-for-profit organization that issubject to UPMIFA. The FSP No. 117-1 also improves disclosure about the organization’s endowment funds, whether or not the organizationis subject to UPMIFA.
The Foundation’s Board of Governors have interpreted New York State nonprofit law as requiring the preservation of the historical dollar value of theoriginal donor restricted endowment gift as of the gift date, absent explicit donor stipulations to the contrary. See note 2 for how the Foundation main-tains its net assets.
Changes in endowment net assets for the year ended June 30, 2009:
Endowment net assets of $10,394,736 are included with investments on the statement of financial position for the fiscal year ended June 30, 2009.From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor requires
the Foundation to retain as a fund of perpetual duration. Deficiencies of this nature are reported in either restricted or unrestricted net assets. Thesedeficiencies resulted from unfavorable market fluctuations that occurred in the economy as a whole, whereby the fair market value of the donor restrict-ed endowment fund was below the amount that is required to be retained permanently by $506,147 as of June 30, 2009.
5. Temporarily and Permanently Restricted Net Assets
Temporarily restricted net assets and permanently restricted net assets are restricted by donors to the following purposes or future periods at June 30,2009 and 2008. The income earned on permanently restricted net assets is added to either temporarily restricted net assets or permanently restricted netassets:
Endowment net assets, beginning of year $8,174,325 $ 4,312,958 $12,487,283 Contribution to endowments 314,381 107,750 422,131
Investment Activity:Interest and dividends 365,068 54,514 419,582 Unrealized loss on investments (1,684,225) (940) (1,685,165)Realized loss on investments (799,044) (527) (799,571)
Total investment activity (2,118,201) 53,047 (2,065,154)Amount appropriated for expenditure (449,524) — (449,524)Endowment net assets, end of year $5,920,981 $ 4,473,755 $10,394,736
TemporarilyRestricted
PermanentlyRestricted
Total Restricted
Investments
2009 2008Temporarily Permanently Temporarily Permanently
restricted restricted restricted restrictedAward programs $3,940,279 $1,310,684 $4,948,859 $1,233,277 Scholarship and fellowship programs 390,241 3,148,071 1,382,064 3,064,681 Grants and other programs 492,431 — 426,745 — College programs in power engineering 65,048 — 82,101 — U.S. engineering programs 316,942 — 383,591 — Gift annuity 178,712 — 307,852 —Student loan program 537,328 15,000 643,113 15,000
$5,920,981 $4,473,755 $8,174,325 $4,312,958