The National Council and National Advisory Forum of Beta Alpha Psi are proud to present this report of the Fraternity's activities during its seventy-ninth year and the financial statements for the year ended April 30, 1998.

Beta Alpha Psi continued its mission during 1997-1998 of providing a program designed to promote the conversion of accounting students into professional accountants. With the contribution of uncounted hours of dedicated service, the members of the National Council, the National Advisory Forum, and Faculty Advisors at each of our chapters continue to make Beta Alpha Psi succeed as the honorary and professional fraternity for accounting students. The student officers at each chapter contribute immeasurably to each chapter's success. I thank each of you. I extend my congratulations to those recognized as outstanding faculty advisors: Phillip Buchanan, Patricia Doherty, Johanna Lyle, Janice Morris, John Salter, and William C. Sturm.

We continued to install new chapters, giving the Fraternity the opportunity to contribute to the development of professionals on an increased number of campuses. This year we installed chapters at California State University — San Bernadino, the University of Alabama - Huntsville, the University of the Pacific, Pace University (New York Campus), Central Missouri State University, University of Oklahoma, East Carolina University, and McNeese State University.

A record number of chapters are being recognized this year for having achieved the status of superior. Other outstanding chapters are being recognized as distinguished or chapter of merit. I congratulate each of these chapters for having provided a very high level of activities and services for the benefit of members, the profession, your university, and your community. I also congratulate those many other chapters who elected not to adopt a goal of earning an outstanding chapter award but fully met the needs on their local campuses though high quality professional and service activities.

The Nancy Harke National Office has been reorganized this year to better serve our chapters' needs. We are fortunate to have three dedicated professionals employed in our national office to whom I am most indebted: Elizabeth Walsh, Jodi Mutnansky, and Zoë Cheung. It was through the efforts of these individuals under the leadership of Elizabeth Walsh that the Fraternity was able to reach its goal of permitting reports to the National Office to be submitted over the internet and each chapter to be able to view the record of its activities over the internet. For the coming year, all chapters will be required to submit reports over the internet.

The Strategic Planning Committee chaired by Thomas Purcell completed its charge. The result is a revised mission statement and a group of initiatives that will be studied over the coming year. Based on the reaction from the Fraternity's stakeholders (principally its members) to the issues identified by the Committee, the Board will take the actions necessary to position this organization to continue to serve the students preparing to enter the accounting profession well into the twenty-first century. I am grateful to Thomas Purcell and those with whom he worked for the successful completion of the charge given his committee.

I also call your attention to the major contributions that have been made to Beta Alpha Psi that permit the Fraternity to continue to provide a wide range of activities while maintaining a modest lifetime membership fee. The American Institute of Certified Public Accountants and those firms that are members of The Beta Alpha Psi Associates provide significant financial support. Ernst & Young LLP has again conducted our audit and prepared the tax returns on a pro bono basis. KPMG Peat Marwick Foundation continues to provide scholarships to members in each chapter achieving superior status. Arthur Andersen Foundation provides Richard E. Claire awards for continuing professional development to faculty advisors who are recognized for their contributions to the Fraternity, the profession, and the members of their chapters.

It is with sadness that I must report that Harvey E. Donley, our National President in 1969-1970, died on June 8, 1998. He will be long remembered by the many accountants for whom he was a mentor.

Sincerely,

Willard Galliart