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ANNUAL REPORT

2005-2006
THE ASME FOUNDATION 2005-2006

ith notable support from ASME members, The ASME The Foundation completed the third year of its Planned Giv-
W Foundation played a key role in furthering the goals of
the mechanical engineering community. In 2005-2006, The
ing Initiative, welcoming five members into the Archimedes
Club, which now contains a total of 46 members.
ASME Foundation awarded scholarships, provided grants
for education and engineering advocacy, and supported The annual appeal raised $43,180 from 228 donors, includ-
honors and awards recognizing outstanding service and ing an employer-based matching gift for volunteer service
achievement. K. Keith Roe chaired The ASME Foundation, from ExxonMobil Foundation and anonymous donations of
providing excellent leadership. $245 made through Network for Good. This year the appeal
was expanded to include a solicitation of lapsed donors
Among numerous activities and programs carried out in the who had not made a recent gift to the Foundation. The
2006 fiscal year, The ASME Foundation adopted a three- solicitation drew further donations allowing The ASME
year development plan, which will guide the Foundation’s Foundation to fund one additional scholarship.
growth through 2009. The five areas of focus in the plan are
planned giving services, an annual appeal, endowment and Lynden F. Davis completed a generous pledge which the
Fund development, administering The ASME Foundation Foundation will use to enhance the ASME Student Section
Grant Program, and a targeted fundraising effort to create Advisor Award. This gift expands an existing endowment to
longer-term support for the ASME Federal Government Fel- provide additional recognition for outstanding ASME stu-
lowship Program. To help achieve this ambitious plan, the dent section advisors.
Foundation committed financial support to fund the Foun-
dation Development Office with its first full-time director of The estate of longtime ASME member Harvey A. Wagner
Development. included a generous bequest, which will be used to estab-
lish a fund for the ASME Old Guard. The Foundation works
with the Old Guard to enhance its fundraising efforts, includ-
ing offering Old Guard donors the convenience of making
on-line contributions using the Foundation’s website.

Planned Giving
In FY06, the Planned Giving Initiative continued its steady
growth. The Archimedes Club, the Foundation’s Planned
Giving recognition group, held special events in San Fran-
cisco and Orlando to honor members as well as build
awareness among potential donors. During 2005-2006,
thoughtful donors arranged two unique planned gift vehi-
cles – prepaid life insurance policies and Charitable Remain-
der Annuity Trusts. By using the Foundation’s planned gift
program, far-sighted supporters of The ASME Foundation
have cemented their plans to leave a legacy of support for
mechanical engineering for years into the future. To date,
more than $3 million in planned gifts has been pledged or
realized by The ASME Foundation.
The ASME Foundation is proud to support FIRST by collaborat-
ing with the ASME Auxiliary in awarding $50,000 in scholar-
The Foundation provides the expertise to help individuals
ships to high school seniors who excel in their participation on
a FIRST team. and their advisors take advantage of the benefits of planned

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giving. Going forward, seminars on estate planning will be
held in conjunction with ASME meetings, so more mem-
bers can learn about the various aspects of planned giving.
As the Planned Giving Program grows and matures, the
benefits to donors and the profession will become increas-
ingly apparent and significant.

The ASME Foundation gratefully acknowledges the dedica-


tion and service of the Planned Giving Advisory Committee
members John Mihm, Lynden Davis, Joseph Falcon, Duane
Jordan, Caecila Gotama and Allen Rhodes.

Grants
Four Foundation grants totaling $230,000 were awarded for
Honorees at the 2005 Honors Assembly, with William W. Durgin,
2006. These awards were created from capital campaign 2005 chair of the ASME Committee on Honors (back row, third
contributions and also from the Orr Fund, established in the from left); Virgil R. Carter, ASME executive director (back row,
memory of valued ASME member Leighton Orr. fourth from left), and Richard E. Feigel, ASME president (seated,
third from right).
Programs funded included the Federal Government Fellow-
ship Program, Industry-Focused Engineering Student and their honor that provides $10,000 in awards for five years.
Early Career Engineer Development Program, Product and The first scholarship from the newly funded Power Division
Marketing Enhancement of the ASME Professional Practice Scholarship was awarded in the amount of $2,500.
Curriculum, and Support of Engineering Faculty Develop-
ment Workshop. William Adams supplemented the Named Living Endow-
ment that he and his wife created with an additional gift
A special grant from the ASME Development Fund to and increased the size of the scholarship to $2,500
launch a campaign for developing longer-term support of annually.
ASME Federal Government fellows was awarded to the
Foundation at the end of FY06. This will cover the
expenses of a three-year fundraising campaign to be Honors and Awards
launched in FY07 to raise operational and endowment The Foundation funded the ASME Honors and Awards pro-
funding for this program. gram, which provides recognition for service and achieve-
ment in specific areas of mechanical engineering. A
highlight of the Honors and Awards program was the
Scholarships and Loans Honors Assembly at the 2005 ASME International Mechan-
The Foundation awarded a total of $200,500 in undergradu- ical Engineering Congress in Orlando, Fla.
ate and graduate scholarships in 2005-2006. The funds
came from the Foundation’s scholarship program and the
Clarke Scholarship Fund, which is given jointly with the Board Members
ASME Auxiliary. For the fifth year, the Bruce J. Heim Foun- Susan H. Skemp and P.J. “Jim” Adam Jr. completed terms
dation provided a $1,500 scholarship for a graduate student as members of the Board of Directors in 2006. The board
whose work furthers space exploration. The family of Frank is pleased to welcome Ward O. Winer as a new director for
and Faye Masino awarded the third of five scholarships in 2006-2009.

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SCHOLARSHIPS

The Kenneth Andrew Roe Scholarship Marco Brusa, Milwaukee School of Lorne Bowman, Virginia Polytechnic
1 award at $10,000 Engineering Institute & State University
Melissa Bollbach, Virginia Commonwealth Kira Kembre, University of Cincinnati Brett Layton, Virginia Polytechnic Institute &
University Eric Robinson, Central Michigan University State University
David Hoffert, University of Wisconsin, Michelle Desidero, Virginia Polytechnic
The Melvin R. Green Scholarship Madison Institute & State University
2 awards at $3,500 each Clifford Smit, Tri State University Zachary Curran, Pennsylvania State
Samantha Rawlings, University of Hartford Stacey Dupre, Louisiana State University University
David Muecke, University of Denver Martin Nolan, City College of New York Joshua Orlowski, Pennsylvania State
The Garland Duncan Scholarship The John and Elsa Gracik Scholarship University
2 awards at $3,500 each 18 awards at $1,500 each Elizabeth Dahm, Pennsylvania State
Adam Madlinger, Massachusetts Institute Terrance McGuire, University of Cincinnati University
of Technology Amelia Stein, SUNY Institute of Technology Gregory Ames, New Jersey Institute of
Eric Clifft, Rose-Hulman Institute of Erica McCay, Oregon Institute of Technology
Technology Technology Derek Edwards, New Jersey Institute of
Matthew Zedler, Massachusetts Institute of Technology
The American Electric Power
Technology Gregory Creighton, New Jersey Institute of
Scholarship
Philip Schloss, University of Missouri, Rolla Technology
1 award at $2,500
Alexandru Popescu, University of Detroit, Taylor Feldmann, Minnesota State
Amul Sathe, University of Michigan, Ann University
Arbor Mercy
Sarah Kelly, Iowa State University Brooke McKelvogue, Minnesota State
The William J. and Marijane E. Adams Dylan Kingsley, University of Colorado at University
Jr. Scholarship Boulder Adam Himmer, Minnesota State University
1 award at $2,500 Timothy Deppen, University of Illinois, Katie Davis, University of Alabama
Kyle Cormany, California Polytechnic State Urbana-Champaign Robert Phillips, University of Alabama
University Christine Lowry, Rochester Institute of Molly Denman, University of Alabama
Technology
The F. W. “Beich” Beichley Scholarship ASME-ASME Auxiliary FIRST Clarke
Todd Lagus, University of Minnesota
1 award at $2,000 Scholarship
Grace Madden, University of Texas at El
Patrick Fletcher, University of Louisville Paso 10 awards at $5,000 each
The Stephen T. Kugle Scholarship Hannah Dillon, St. Martin’s University Christopher Domanti, Fairport High School,
1 award at $2,000 Jeffrey Schlosser, Georgia Institute of Fairport, N.Y.
Erin Keys, University of Texas at Austin Technology William S. Goehringer, Dulaney High
Taylor Stockton, Oregon Institute of School, Lutherville, Md.
The Frank and Faye Masino Scholarship Technology Roy J. Gross, North Penn High School,
1 award at $2,000 Andrew Butcher, California Maritime Lansdale, Pa.
Paul Tychsen, Milwaukee School of Academy Grant G. Hanson, Memorial High School,
Engineering James Kang, Southern Methodist Tulsa, Okla.
The Frank William and Dorothy Given University Matthew R. Jones, Clover High School,
Miller ASME Auxiliary Scholarship Jessica Gmeinder, Rochester Institute of Clover, S.C.
2 awards at $1,500 each Technology Chase J. Kramer, George Washington High
Bryan Coley, University of Alabama, Power Division Scholarship School, Philadelphia, Pa.
Tuscaloosa 1 award at $2,500 Nathaniel A. Laverdure, Chantilly High
Jay Johnson, University of Missouri, Rolla Meredith Caldwell, University of Alabama, School, Oak Hill, Va.
Tuscaloosa Malia Paloian, Xavier College Preparatory,
The ASME Foundation Scholarship Chandler, Ariz.
17 awards at $1,500 each The Robert F. Sammataro Pressure Brian Plattenburg, Wheeler High School,
Arian Vistamehr, Texas A&M University Vessel Piping (PVP) Division Memorial Marietta, Ga.
Gbenga Ogunleye, Louisiana State Scholarship Brian Schmalzried, McDowell High School,
University 1 award at $1,000 Erie, Pa.
Eduardo Navarrete Tolento, Universidad Brian Fellon, Drexel University
Nacional Autónoma de México Graduate Student Fellowships
The Bruce J. Heim Foundation 4 awards at $5,000 each
Pierre-David Letourneu, McGill University (Graduate) Scholarship
Jason De Stigter, Dordt College Douglas Bristow, University of Illinois,
1 award at $1,500
Peter Krenzke, Valparaiso University Urbana-Champaign
Antonius Nusawardhana, Purdue University Anne-Marie Lerner, Georgia Institute of
Brandon Haws, University of California,
Santa Barbara 2005 Clarke Scholarship (awarded Technology
Katherine Sweet, Olivet Nazarene jointly with the ASME Auxiliary) Enrico Manes, Purdue University
University $6,000 awards to each of five colleges for Joshua Vaughan, Georgia Institute of
Travis Turnbull, Texas Tech University 2005 freshmen Technology
Oumar Barry, Ryerson University (Canada)

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HONOR ROLL OF DONORS

CONTRIBUTORS TO ONGOING EDUCATIONAL, SCHOLARSHIP, AND HONORS PROGRAMS

Centurion Club Thomas M. Barlow Evelyn Shopp Robert Hess


$1,000 and above David L. Belden Robert Simmons George Hicks
Dale Bethke Fernando Sisto Gerard Hillenbrand
ExxonMobil Foundation
Michael E. Bohse Phillip Sizer Charles Hinton
William J. Adams
Robert H. Boorujy Arthur Skillman Jr. Rolf Hoexter
Lynden F. Davis
Robert Bosnack Donald Steele George Holliday
The Bruce J. Heim
Abdon J. Bray Beno Sternlicht Melvin Holubar
Foundation Robert Hubby THE ASME FOUNDATION
Stanley Brodsky Carl Strodtman
ASME Power Division Susan Ipri Brown BOARD OF DIRECTORS
Anthony Cappucci Jr. Harold Taylor
Walter R. Garrison Millard Johnson
Masino Family
William Craft Robert Teece 2005-2006
William Dackis David Thompson Joseph Kaldon
Larry Rhoades Judith Kearney
Ellison L. Davison Roy Trowbridge
John A. Swanson James Keiler K. Keith Roe
Burton Dicht Lawrence Trupo
Steve Kerpan Chair of the Board
Benefactors Edgar Doehler Joseph Van Overveen
Blake King James F. Wood
$500–$999 Charles Edmonds Brian Will
Henry Koenig Vice Chair
Roger Eichhorn Richard Wilson
P.J. Adam Jr. Emil Kondra P. J. Adam, Jr.
John Fastabend David Wing
Elizabeth C. Barna Samuel Korellis David L. Belden
Saul Fenster Helmut Wolf
Donald Berkey Alan Korman Virgil R. Carter
F. Joseph Fischer Stanley Yokell
Sidney Bernsen Charles Leslie John F. Elter
Frank Gillette Donald Zwiep
Virgil R. Carter Lysbeth Lieber Richard E. Feigel
Paul Glasgow
Vernon L. Eriksen Friends Michael Lubrano Richard R. Grigg
Christian Gottzmann
Richard R. Grigg Gifts to $99 Jerry Lyons Lee S. Langston
Thomas Greider
Patricia Henry Randall Maeda John C. Mihm
Philip Hamilton Harvey Allen Robert E. Nickell
Warren R. Leonard Frederick J. Hanzalek Anthony Alonzo Charles Marston
Thomas G. Loughlin Lee Matsch Susan H. Skemp
Arthur B. Harris Fred Bagwell John A. Swanson
Robert H. Page Frank Henry Bruce Baker Duncan Mc Leish
Susan H. Skemp William Meyer Nina Webb
Henry Iida Allen Bashore
Robert Jeffers Charles Bayles Charles Moore Archimedes Club
Patrons Robert Mott
$250–$499 James Jones Richard Bean Observer
Hardin Joyce Royce Beckett Louis Mscichowski
Lynden F. Davis
Eugene V. Abraham Guido G. Karcher John Behen Malcolm Murray
John Alden William J. Kelly Howard Berman Jacob Myers Staff
Eugene Avallone Daniel Kiland Henry Bernstein Ephraim Natkins Judith Kearney
Albert Brion Jane Knoche Charles Bert Roger Olleman Director of Development
Bruce Bodnar Frederick H. Kohloss James Bertram John Pope Warren R. Leonard
Stephen Crandall Normand Laurendeau Karl Boldt Richard Potter Executive Director
Jeffrey Fong Byron Lee Theodore Brna Joseph Rencis Michael K. Weis
David Hardy John A. Lee John Burns Lester Rhoads Treasurer
George Hatsopoulos Mark Lengsfeld Josiah Campbell John Rice
Richard Hirsch C. Ronald Leonard Robert Chase William Roquemore
Wilfred Jones Samuel Levin Yu Chen Jorma Sarto
Joseph M. Juran Mendall Long Yasutoshi Shirota
Arthur Clark
Dean Kamen Tom Love John Shortt
John Corcoran
Kim I. Mastalio Robert Mann Oliver Siebert
George Coyle
Michael Michaud Norfleet Smith
C. Samuel Martin John Curreri
William F. Mitchell Alfred B. Soboyejo
Alexander Matiuk Louis Dale Jr.
Willard A. Nott Gino Sovran
Norman Maynard Louise Davis
Luciano Santos David Spokely
John Morrow William De Fotis
David J. Soukup Richard Stonage Jr.
Thomas Mullett William Der Garry
Bill Strathmann Robert Stone
Isaac Murray William Dickhart
John Talbott Charles H. Swenson
Vicki Payne Vince Dilworth Jr.
Judy M. Vance Henry Szepan
Richard Phelan James Drenning
Howard Taishoff
W. Pysh Jay Geller
Sponsors Lawrence C. Tobias
Ronald Reder James Glenn
$100–$249 John A. Weese
Clayton Robson Charles Goodman Charles Whitman
Network for Good Bernard Ross Benjamin Goodwin Paul Wilbur
James Allman Akira Sakunari James Hamm Robert Winkler
Otto Anderson Joseph Scher Dennis Hasson Richard Wise
Sunao Aoki Byron Schieber Lawrence Hauben Everett E. Zwicky Jr.
Harry Armen Glenn Schurman Harold Herstedt

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THE ASME FOUNDATION
ARCHIMEDES CLUB

C AT E G O R I E S Planned Gift Face Value Amount

P L AT I N U M $1,000,000 and above


GOLD $500,000 to $999,999
S I LV E R $100,000 to $499,999
BRONZE $25,000 to $99,999
MEMBER All Planned Gifts up to $24,999

Members of ASME and supporters of The ASME Foundation, past and present,
who leverage the future of the mechanical engineering profession with a
planned gift, are recognized as members of the Archimedes Club.

ARCHIMEDES CLUB FOUNDING MEMBERSHIP THE ASME FOUNDATION


GOLD Thomas G. Loughlin 2005-2006 PLANNED
Margaret and Leighton Orr (In memory of Julius A. Naab) GIVING ADVISORY
Susan H. Skemp COMMITTEE

S I LV E R Chor Tan
Harvey Wagner MEMBERS
P.J. Adam Jr. John Mihm, Chair
Robert Cepluch George C. Wiedersum Caecilia M. Gotama
Lynden F. Davis Robert Wurtz Duane P. Jordan
K. Keith Roe
Nancy and Roland Fitzroy Allen F. Rhodes
St. Clair Luzzi MEMBER Lynden F. Davis
Elizabeth C. Barna Joseph Falcon
Carol and Allen Rhodes
Janet and John Swanson James Coaker
John Corcoran ASME
Linda Kloeblen Tang and Thomas Tang Judith Kearney
Mary Evans Stowell Thompson John Elter Warren R. Leonard
Roy Trowbridge Philip Hamilton
Henry Koenig
BRONZE June Ling
Mahesh C. Aggarwal E. Roland Maki
Irma and Robert Bennett Magda and Michael Michaud
Merle and Virgil R. Carter The Estate of James McHugh
Rose and Samuel Collier John Mihm
Charles Concordia K. Keith Roe
Falcon Family Trust Byron Schieber Jr.
Marilyn and Willis Gardner Terry E. Shoup
Richard J. Goldstein Pamela and David Soukup
Francesca and Joe Holm James Woodburn
Patricia and Duane Jordan Nina and Tal Webb
Warren R. Leonard
(In memory of Warren Leonard Sr.)

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HONORS AND AWARDS

HONORARY Melvin R. Green Codes H. R. Lissner Medal Pi Tau Sigma Gold Medal Yeram S. Touloukian
MEMBERS and Standards Medal Peter A. Torzilli Nicholas Fang Awards
Alva L. Addy J. Robert Sims Jr. Fellow ASME University of Illinois Johanna Levelt Sengers
Life Fellow ASME Fellow ASME Hospital for Special Fellow ASME
Becht Engineering Co., Inc. Surgery James Harry Potter Gold
James R. Welty National Institute of
Medal Standards and Technology
Life Fellow ASME Heat Transfer Memorial Machine Design Award Richard O. Buckius
Ward O. Winer Award Itzhak Green, D.Sc. Fellow ASME Frank Von Flue Award
Life Fellow ASME Fellow ASME University of Illinois William F. Ranson, III
Georgia Institute of Science
Arun Majumdar Georgia Institute of Fellow ASME
Technology Technology Pressure Vessel and University of South
Fellow ASME Piping Medal
ASME MEDAL University of California Charles T. Main Student Carolina
Michel J. Pettigrew
Richard J. Goldstein Art Section Award Fellow ASME George Westinghouse
Life Fellow ASME C. Thomas Avedisian Ecole Polytechnique Medal
University of Minnesota Gold
Fellow ASME Adeodato I. Botello- Dixy Lee Ray Award Gold
ACHIEVEMENT Cornell University Arredondo Ben T. Zinn
Richard Pombo
AWARDS General Universidad de Guanajuato U.S. House of Fellow ASME
Kambiz Vafai Silver Representatives Georgia Institute of
Bergles-Rohsenow Young Fellow ASME Technology
Investigator Award in Amanda M. Thomas Charles Russ Richards
University of California Virginia Polytechnic
Heat Transfer Memorial Award LITERATURE AWARDS
Mayo D. Hersey Award Institute and State
Wilson K. S. Chiu University Ramesh K. Agarwal Blackall Machine Tool &
University of Connecticut Koji Kato Fellow ASME Gage Award
Tohoku University M. Eugene Merchant Washington University
Per Bruel Gold Medal For Manufacturing Medal Of Y Lawrence Yao
Noise Control and Soichiro Honda Medal Ralph Coats Roe Medal Columbia University
ASME/SME
Acoustics David E. Foster Bernard Amadei I. Cevdet Noyan
University of Wisconsin Yoram Koren Columbia University
Cyril M. Harris University of Colorado
Fellow ASME Wenwu Zhang
Daniel C. Drucker Medal Internal Combustion University of Michigan Safety Codes and GE Global Research Center
Alan Needleman Engine Award Standards Medal
Van C. Mow Medal Gas Turbine Award
Fellow ASME N. Richard Dunteman Herschell E. Godwin, Jr.
NR Dunteman LLC Robert L. Sah Ivor J. Day
Brown University The Godwin Co., LLC
University of California Fellow ASME
Thomas A. Edison Patent Johnson & Johnson Nadai Medal
R. Tom Sawyer Award Whittle Laboratory
Award Consumer Companies, Erio Benvenuti
Richard M. Christensen Christopher Freeman
Charles Alexander Garris Inc. Medal Fellow ASME
Honorary Member ASME Thomas Scarinci
Fellow ASME Abel Hernandez-Guerrero Retired
University of California Melville Medal
George Washington Fellow ASME
Ben C. Sparks Medal
University Universidad de Guanajuato Raj M. Manglik
Burt L. Newkirk Award Alok K. Verma Fellow ASME
William T. Ennor Warner T. Koiter Medal Old Dominion University
Mitjan Kalin University of Cincinnati
Manufacturing Pierre Suquet Juntao Zhang
University of Ljubljana Ruth and Joel Spira
Technology Award Lab De Mecanique Et
D’Acoustique Outstanding Design Worcester Reed Warner
Jyotirmoy Mazumder Old Guard Young
Educator Award Medal
University of Michigan Engineers Award
Frank Kreith Energy John S. Lamancusa
Award Winner James G. Simmonds
Fluids Engineering Award Pennsylvania State
Catherine Q. Lengsfeld Fellow ASME
Wolfgang A. Rodi Roland Winston University
Retired
University of Karlsruhe University of California Runner-Up Student Section Advisor
Timo Marquez Arreaza Arthur L. Williston Medal
Freeman Scholar Award James N. Landis Medal Award
Promode R. Harold R. Denton Rufus Oldenburger Medal Debendra K. Das First
Bandyopadhyay Nuclear Safety Consultant J. Karl Hedrick Fellow ASME Tyler E. Schnug
Fellow ASME University of Alaska Second
Bernard F. Langer Nuclear Fellow ASME
Naval Undersea Warfare University of California J. Hall Taylor Medal Amanda M. Thomas
Codes And Standards
Center Virginia Polytechnic
Award Performance Test Codes Thomas P. Pastor
Y.C. Fung Young Warren H. Bamford HSB Global Standards Institute and State
Medal University
Investigator Award Westinghouse Electric Co., John W. Siegmund Robert Henry Thurston
Beth A. Winkelstein LLC Fellow ASME Third
Lecture Award
University of Pennsylvania Sheppard T. Powell Joy K. Adjorlolo
Gustus L. Larson Sia Nemat-Nasser
Henry Laurence Gantt Memorial Award Associates LLC Fellow ASME
Medal Narayana R.V. Aluru Marshall B. Peterson University of California
Charla Kamm Wise University of Illinois Award Timoshenko Medal
Lockheed Martin Nicolas Fillot
Aeronautics Co. Kenneth L. Johnson
Lamcos Insa Lyon University of Cambridge

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FINANCIAL STATEMENTS
The ASME Foundation, Inc.

STATEMENT OF ACTIVITIES
Year ended June 30, 2006
(with summarized totals for the year Temporarily Permanently 2006 2005
ended June 30, 2005) Unrestricted restricted restricted Total Total

Operating revenue
Contributions $ 29,170 291,959 — 321,129 336,569
Interest and dividends, net of
investment fees of $92,381 in
2006 and $76,412 in 2005 159,392 234,392 38,178 431,962 426,996
Net assets released from restrictions 324,059 (324,059) — — —
TOTAL OPERATING REVENUE 512,621 202,292 38,178 753,091 763,565

Operating expenses (note 6)


Grants 156,803 — — 156,803 166,836
Contributions to ASME
programs (note 3) 303,400 — — 303,400 308,157
Scholarships, awards, and honoraria 263,287 — — 263,287 288,500
Development office salaries and benefits 132,667 — — 132,667 —
Medals, plaques, and certificates 37,053 — — 37,053 61,135
Occupancy and administration (note 3) 87,200 — — 87,200 87,503
Professional and consulting fees 26,466 — — 26,466 16,970
Reproduction, stationery, and supplies 8,046 — — 8,046 3,929
Travel, postage, and other 49,075 — — 49,075 60,847
TOTAL OPERATING EXPENSES 1,063,997 — — 1,063,997 993,877
(DEFICIENCY) EXCESS OF OPERATING REVENUE
OVER OPERATING EXPENSES (551,376) 202,292 38,178 (310,906) (230,312)

Nonoperating activity
Appreciation in fair value of
investments (note 4) 726,047 717,832 461 1,444,340 1,212,214
INCREASE IN NET ASSETS 174,671 920,124 38,639 1,133,434 981,902
NET ASSETS AT BEGINNING OF YEAR 9,344,653 6,702,727 2,590,747 18,638,127 17,656,225
NET ASSETS AT END OF YEAR $9,519,324 7,622,851 2,629,386 19,771,561 18,638,127

See accompanying notes to financial statements.

The Board of Directors


The ASME Foundation, Inc.:
We have audited the accompanying statement of financial position
Independent Auditors’ Report of The ASME Foundation, Inc. (the Foundation) as of June 30, 2006,
and the related statements of activities and cash flows for the year
then ended. These financial statements are the responsibility of the
Foundation’s management. Our responsibility is to express an opin-
ion on these financial statements based on our audit. The prior year
summarized comparative information has been derived from the
Foundation’s 2005 financial statements and, in our report dated
August 19, 2005, we expressed an unqualified opinion on those
financial statements.
We conducted our audit in accordance with auditing standards gen-
erally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of
material misstatement. An audit includes consideration of internal
control over financial reporting as a basis for designing audit proce-
8 dures that are appropriate in the circumstances, but not for the pur-
STATEMENT OF FINANCIAL POSITION STATEMENT OF CASH FLOWS
June 30, 2006 June 30, 2006
(with comparative amounts as of (with comparative amounts for the
June 30, 2005) 2006 2005 year ended June 30, 2005) 2006 2005

Assets Cash flows from operating activities


Cash and cash equivalents $ 119,699 121,246 Increase in net assets $1,133,433 981,902
Student loans receivable, less Adjustments to reconcile increase
allowance for doubtful accounts of in net assets to net cash used in
$90,500 in 2006 and $95,600 operating activities:
in 2005 921,159 852,962 Endowment contributions
Contributions receivable, net — 8,949 and interest and dividends
Medal inventory 183,873 132,538 required to be added to
Investments (note 4) 19,139,521 17,588,019 permanently restricted
TOTAL ASSETS $20,364,252 18,703,714 net assets (38,178) (34,237)
Appreciation in fair value
Liabilities and Net Assets of investments (1,444,340) (1,212,214)
Liabilities: Changes in assets and liabilities:
Accounts payable and Decrease in contributions
accrued expenses $ 9,371 11,901 receivable 8,949 18,205
Annuities payable 583,320 53,686 (Increase) decrease in
TOTAL LIABILITIES 592,691 65,587 medal inventory (51,335) 17,482
Net assets: (Decrease) increase in
accounts payable
Unrestricted 9,519,324 9,344,653
and accrued expenses (2,530) 8,673
Temporarily restricted (note 5) 7,622,851 6,702,727
NET CASH USED IN OPERATING ACTIVITIES (394,000) (220,189)
Permanently restricted (note 5) 2,629,386 2,590,747
TOTAL NET ASSETS 19,771,561 18,638,127 Cash flows from investing activities
TOTAL LIABILITIES AND NET ASSETS $20,364,252 18,703,714
Purchases of units in the
investment pool of ASME (1,189,567) (402,325)
Sales of units in the investment
See accompanying notes to financial statements. pool of ASME 1,082,405 482,222
Loss on sale of contributed securities — (358)
Loans issued to students (333,834) (148,410)
Collection of loans from students 265,637 268,101
NET CASH (USED IN) PROVIDED BY
INVESTING ACTIVITIES (175,359) 199,230

Cash flows from financing activities


Endowment contributions and interest
and dividends required to be added
to permanently restricted net assets 38,178 34,237
pose of expressing an opinion on the effectiveness of the Founda- Annuity payments (30,242) (8,288)
tion’s internal control over financial reporting. Accordingly, we Increase in annuities payable 559,876 50,094
express no such opinion. An audit also includes examining, on a NET CASH PROVIDED BY FINANCING ACTIVITIES 567,812 76,043
test basis, evidence supporting the amounts and disclosures in the NET (DECREASE) INCREASE IN CASH AND
financial statements, assessing the accounting principles used and CASH EQUIVALENTS (1,547) 55,084
significant estimates made by management, as well as evaluating Cash and cash equivalents at
the overall financial statement presentation. We believe that our beginning of year 121,246 66,162
audit provides a reasonable basis for our opinion.
Cash and cash equivalents at end
In our opinion, the financial statements referred to above present of year $ 119,699 121,246
fairly, in all material respects, the financial position of The ASME
Foundation, Inc. as of June 30, 2006, and the changes in its net
assets and its cash flows for the year then ended in conformity See accompanying notes to financial statements.
with U.S. generally accepted accounting principles.

November 17, 2006 9


FINANCIAL STATEMENTS
The ASME Foundation, Inc. Notes to Financial Statements June 30, 2006
(with comparable financial information for June 30, 2005)

1. Organization ed net assets unless their use is restricted by explicit donor


The ASME Foundation, Inc. (the Foundation) was incorporat- stipulation or by law. Expirations of temporary restrictions on
ed as a not-for-profit supporting organization on February 7, net assets (i.e., the donor-stipulated purpose has been ful-
1986, to promote the art, science, and practice of mechanical filled and/or the stipulated time period has elapsed) are
engineering throughout the world and engage in activities reported as net assets released from restrictions.
which support ASME. The Foundation is exempt from federal Cash Equivalents
income taxes under Section 501(c)(3) of the Internal Revenue Cash equivalents include commercial paper maturing within
Code. 90 days unless renewed.
The Foundation provides the following services:
Medal Inventory
• Encourages and rewards outstanding achievement in
Medal inventory is carried in the financial statements at the
mechanical engineering by obtaining funds for the confer-
lower of cost, which is determined using the first-in, first-out
ring of honors and awards on persons and organizations
method, or market.
who or which have made substantial contributions to the
advancement of mechanical engineering; Split Interest Agreements
• Obtains funding for scholarships, grants, and/or awards The Foundation receives contributions in the form of chari-
which support and expand career opportunities or profes- table gift annuities and trusts for which the Foundation is
sional growth in the field of mechanical engineering the trustee. Such split interest agreements typically pro-
through education and research; vide for payments to a donor or his/her beneficiary a fixed
• Sponsors programs and projects such as lectures, semi- amount for a specified period. The time period can be for
nars, and clinics which contribute to the continuing edu- the life of the donor or his/her designee. The assets
cation and professional growth of practicing mechanical received are recognized at fair value when received, and an
engineers; and annuity payable is recorded at the present value of future
• Supports research in mechanical engineering and the cash flows expected to be paid to the donor or his/her
rapid dissemination of results throughout the community designee based upon mortality tables and interest assump-
of mechanical engineers. tions. Contribution revenue is recognized as the difference
2. Summary of Significant Accounting Policies between these two amounts. Contributions, investments,
and a liability to annuitants are recognized by the Founda-
Basis of Accounting tion in the period in which the assets are donated. Adjust-
The financial statements have been prepared on the accrual ments to the annuity payable to reflect amortization of the
basis of accounting. discount and changes in the life expectancy of the donor or
Basis of Presentation his/her beneficiary are recognized in the statement of activ-
The Foundation’s net assets and revenue, expenses, gains, ities.
and losses are classified based on the existence or absence Contributions
of donor-imposed restrictions. Accordingly, the net assets of Contributions, which include unconditional promises
the Foundation and changes therein are classified and report- to give (pledges), are recognized as revenue in the
ed as follows: period received.
Unrestricted net assets. Net assets that are not subject to
Use of Estimates
donor-imposed stipulations.
The preparation of financial statements in conformity with
Temporarily restricted net assets. Net assets subject to
U.S. generally accepted accounting principles requires man-
donor-imposed stipulations that will be met either by
agement to make estimates and assumptions that affect the
actions of the Foundation and/or the passage of time.
reported amounts of assets and liabilities and disclosure of
Permanently restricted net assets. Net assets subject to
contingent assets and liabilities at the date of the financial
donor-imposed stipulations that they be maintained perma-
statements and the reported amounts of revenues and
nently by the Foundation. Generally, the donors of these
expenses during the reporting period. Actual results could dif-
assets permit the Foundation to use all or part of the
fer from those estimates.
income earned on related investments for general or spe-
cific purposes. Prior Year Comparative Information
Revenues are reported as increases in unrestricted net The financial statements are presented with 2005 compara-
assets unless their use is limited by donor-imposed restric- tive information. With respect to the statement of activities,
tions. Expenses are reported as decreases in unrestricted net such prior year information is presented in total, but not by
assets. Gains and losses on investments and other assets or net asset class. Such information does not include sufficient
liabilities are reported as increases or decreases in unrestrict- detail to constitute a presentation in conformity with U.S.

10
generally accepted accounting principles. Accordingly, such the periods in which they occur, and interest and dividends
information should be read in conjunction with the Founda- are recognized as revenue in the period earned. At June 30,
tion’s 2005 financial statements from which the summarized 2006 and 2005, the Foundation’s interest had a cost basis
information was derived. of $17,457,266 and $16,481,214, respectively, and a fair
value of $19,139,521 and $17,588,019, respectively.
3. Transactions with ASME
The appreciation in fair value of investments for the years
ASME charges the Foundation for office space and other ser- ended June 30, 2006 and 2005, consisted of the following:
vices. In 2006 and 2005, such charges totaled $87,200 and
2006 2005
$87,503, respectively. In 2006 and 2005, the Foundation made
Net realized gain on
contributions of $303,400 and $308,157, respectively, to ASME
investment transactions $ 868,890 681,412
in support of honors and awards, and other programs.
Net change in unrealized gain 575,450 530,802
4. Investments $1,444,340 1,212,214
The Foundation’s investments consist of an undivided inter-
5. Temporarily and Permanently Restricted
est in the investment pool of ASME. ASME pooled invest-
ments consist of mutual funds, bonds and notes, common
Net Assets
and preferred stock, money market funds and certificates of Temporarily restricted net assets and the income earned on
deposit. Investments of the pool are recorded at fair value permanently restricted net assets are restricted by donors to
based upon quoted market prices. Realized and unrealized the following purposes or future periods at June 30, 2006 and
gains and losses are recognized as changes in net assets in 2005:

2006 2005
Temporarily Permanently Temporarily Permanently
restricted restricted restricted restricted
Award programs $4,918,305 1,023,949 4,470,625 1,016,117
Scholarship and fellowship programs 1,121,352 1,590,437 1,022,905 1,559,630
Grants and other programs 340,405 — 266,677 —
College programs in power engineering 76,659 — 72,045 —
U.S. engineering programs 336,321 — 305,108 —
Gift annuity 238,238 — — —
Student loan program 591,571 15,000 556,418 15,000
Future periods — — 8,949 —
$7,622,851 2,629,386 6,702,727 2,590,747

6. Functional Expenses
The Foundation’s expenses, which are reported by natural
classification in the accompanying statement of activities,
benefited the following program and supporting services for
the years ended June 30, 2006 and 2005:
2006 2005
Program services:
Awards $508,959 563,078
Grants 156,803 166,836
Scholarships and fellowships 188,056 189,300
Student loan program 10,144 25,383
863,962 944,597
Management and general 67,368 49,280
Development 132,667 —
$1,063,997 993,877

11
THE ASME FOUNDATION BOARD OF TRUSTEES

K. Keith Roe D. Edward Crow Joseph Kovach George W. Paczkowski John A. Swanson
Chairman and President Retired Executive Vice President, Engineering Vice President President
Burns and Roe Pratt & Whitney & Manufacturing Downstream Technology Swanson Analysis Services,
Enterprises, Inc. Technology Conoco/Phillips Inc.
John F. Elter
Adalberto Alfonso Jr. Parker Hannifin Corp. Winfred M. Phillips Roy P. Trowbridge
Chief Technology Officer
Vice President Hydraulic Group Vice President & Dean Retired Executive
Plug Power
Florida Power & Light Co. University of Florida General Motors
Nancy D. Fitzroy Allan E. Kukoski
David L. Belden Retired Executive Director, Engineering Michael Rencheck Ward O. Winer
Executive Director, General Electric and Design Senior Vice President Chair
Emeritus Foster Wheeler Power Engineering, Georgia Institute of
ASME Walter R. Garrison Group Technical & Environmental Technology
Chairman Services School of Mechanical
Stuart R. Bell Kim I. Mastalio
CDI Corporation American Electric Power Engineering
Dean of Engineering President Energy Services
University of Kansas Richard R. Grigg Service Corp.
Division James F. Wood
Virgil R. Carter Executive Vice President & Black and Veatch David R. Smith President and CEO
Executive Director Chief Operating Officer Director, Production Babcock Power Inc.
FirstEnergy Corp. John Mihm Systems Engineering &
ASME Charles L. Wu
President Technology
Kenton Chickering III Robert M. Guezuraga JCM Consulting Director, Manufacturing and
Eastman Kodak
Retired Executive President Cardiac Surgery Vehicle Design
Daniel Valve Co. Medtronic, Inc. C. Dan Mote Jr. Richard H. Stanley Ford Motor Company
President Chair
Jack T. Coffman George N. Hatsopoulos Warren R. Leonard
University of Maryland Stanley Group
Senior Vice President Chairman Executive Director
Oklahoma Gas and Electric Thermo Electron Corp. The ASME Foundation

The ASME Foundation


Three Park Avenue
New York, NY 10016-5990 U.S.A.
212-591-7000
www.foundation.asme.org

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