Board of Directors
APPA Executive Committee Meeting
May 6, 2000
Alexandria, Virginia
Approved via e-mail
| PRESENT: | |
| Margaret P.Kinnaman | President |
| John Harrod | President-Elect |
| Phil Cox | Secretary Treasurer |
| Gary Reynolds | Vice President of Educational Programs |
| Joseph D. Rubertone | Vice President of Information Services |
| Jack Colby | Vice President of Professional Affairs |
| Mike Besspiata | Senior Representative |
| INVITED GUESTS: | |
| Vicki DeWitt | Incoming Vice President for Information Services |
| Charles Tate | President, Tate & Tryon |
| STAFF: | |
| Lander Medlin | Executive Vice President |
| Chong-Hie Choi | Director of Finance |
| Randel Edwards | Executive Administrative Assistant |
- CALL TO ORDER
President Kinnaman called the meeting to order at 8:09 a.m.
- WELCOME AND INTRODUCTION OF NEW OFFICERS
President Kinnaman introduced the newly elected officers: Gary Reynolds, President-Elect, Vicki DeWitt, Vice President for Information Services, and James (Jim) Roberts, Vice-President for Educational Programs (Absent). President Kinnaman welcomed everyone to the meeting.
- PRESENTATION AND REVIEW OF AUDIT OF FICSCAL YEAR 1999-2000 FINANCES
In order to be sensitive to Mr. Charles Tate's schedule, President Kinnaman recommended the Executive Committee move to his presentation and review of the audit of APPA's fiscal year 1999-2000 finances and receive the President's Report later in the meeting.
Lander Medlin, APPA's Executive Vice President, introduced Mr. Charles (Charlie) Tate, President, Tate & Tryon - Certified Public Accountants and Consultants.
In a departure from the past four years of presenting a variety of charts and graphs to the Executive Committee, Mr. Tate presented a summary of APPA's fiscal year1999-2000 finances and an overview of what he is observing in other associations. This was followed by a "Q & A" session.
First, Mr. Tate commended Ms. Chong-Hie Choi, APPA's Director of Finance and Administration, on how quickly and efficiently she prepared for the audit. He said that this is a very positive reflection of the financial systems at APPA. Mr. Tate reported this was an unqualified audit. There were no material weaknesses. The system is working well. Mr. Tate commented on the stable financial condition of APPA's accounts. There have been significant strides made particularly in the past two to three years.
Regarding the associations that he works with (which number over 100 associations), Mr. Tate noted the following:
- A trend towards greater investment in the equity market in the last few years.>
- An observance of an increased number of CEOs getting themselves and their associations in trouble; and simultaneously, a lack of awareness on the part of the association's Board members.
- A move from quantitative toward qualitative conversations.
- The available pool of CPAs and/or those with financial expertise in associations is decreasing.
- A rapidly changing skill set is required for associations' directors of finance including human resources, database management, technology, accounting, etc.
- Increasingly, associations are becoming integral facilitators of e-commerce.
- Increased expenditures for database management (Mr. Tate's observation was that unfortunately a lower level clerk is usually responsible for database management.).
- Increased outsourcing of data processing.
The Executive Committee had an extended discussion of APPA's reserves and the investment of those reserves.
Phil Cox asked Mr. Tate how APPA compared to other associations with whom Mr. Tate works regarding its approach toward equity investment. Mr. Tate who works with over one hundred associations said that was difficult to answer. There is tremendous diversity within the various associations. It was noted that APPA is getting the top interest rates in the country on its certificates of deposit (C.D.s). Since APPA must pay for some very large bills (e.g., related to the annual meeting) in advance, it must be very strategic about its certificates of deposit.
The hesitancy of APPA staff to follow the trend towards greater involvement in the equity market was explained as follows:
- Inability to predict the future economic/stock market.
- Difficulty in finding both an economical and trustworthy money manager.
- Challenges in cash management (60% of APPA's money is received by July).
- Three - six months of cash reserves to cover operational expenses has not yet been achieved.
The Executive Committee asked Lander Medlin about current opportunities for APPA related to e-commerce and purchasing consortiums. Lander replied that like many other CHEMA organizations, APPA is receiving a significant number of overtures and interesting propositions from e-commerce and dot.com companies. The Committee agreed that it is important to constantly compare these opportunities to APPA's mission and APPA's 501-C-3 status in order to avoid tax issues and to select those opportunities which are most beneficial for the achievement of APPA's goals and objectives. APPA will continue to have its partnership agreements legally reviewed.
Gary Reynolds recommended that the Board continue to be apprised each time it meets of the difference between cash/liquid assets and non-liquid assets/building equity to better illustrate the financial health and status of APPA.
The Executive Committee continued its discussion surrounding equity investment. APPA staff noted that APPA already has a Board established investment policy which addresses short, mid, and long-term investments. (Copies of the policy were distributed to the Executive Committee members later in the meeting.) In addition, it was noted that this is only the second year of real cash reserves set aside for APPA in recent years.
The Executive Committee recommended that it revisit APPA's Investment Policy, the Long Term Investment Section, at its July 13th meeting in Fort Worth.
The Executive Committee requested that staff provide the Executive Committee with some historical data that would be helpful to the Committee as it continues to explore the option of equity.
Lander Medlin highlighted several issues that have impact on APPA's finances, cash management and investments, future needs and directions, and the delivery of services:
- Available resources to invest/reinvest in APPA projects and initiatives.
- Income from membership has increased partly as a result of an aggressive recruitment campaign which is still somewhat volatile.
- Significant attrition in institutional membership as a result of retirements (consequent loss of institutional memory and loyalty to the association).
- APPA's constituency is changing.
- The importance of conducting a communications audit to ensure APPA knows what information its members want and how they want that information delivered.
- A desire to keep membership dues amounts as flat as possible over the coming(s).
- The importance of technology and its application by APPA.
- APPA must increase its institutional membership base.
- The increased need to do more targeted advertising and marketing.
- Book production - the costs, the problems, and the effect of the Internet.
The consensus of the Executive Committee was that APPA wants to continue to explore opportunities for delivery of services via the Internet.
Lander Medlin reported that APPA Institutes are doing extremely well. The Professional Leadership Center Academy scheduled for June 4-8, 2000 in Rancho Mirage, California, has approximately one hundred registrants. Track One is completely full. Brochures advertising next year's PLC will be available at the Annual Meeting in Fort Worth.
APPA continues to work collaboratively with other CHEMA organizations. APPA is organizing an Institute for Facilities Finance with NACUBO for delivery next spring 2001. Lander Medlin and other APPA staff will be meeting on June 15th with NACUBO and SCUP to do preliminary planning for the 2006 Annual Meeting co-locate in Hawaii.
Lander Medlin reported that Ron Hicks is doing a wonderful job for APPA. There are already twice the number of sponsorships secured for the 2000 Annual Meeting as were secured for 1999 Annual Meeting. In addition, there is good support of various APPA projects.
The Executive Committee engaged in a discussion related to the selection of the Annual Meeting location and its effect on attendance. While changing the process is a controversial issue, the Executive Committee agreed that it should revisit the issue. Before presenting any proposed changes to the APPA Board of Directors, the Executive Board recommended the following:
- APPA prepare a business case based on a multi-year hotel contract approach; a focus on top tier, historical and/or vacation destination cities; limiting the trade show component to allow for a "one roof" meeting approach; demonstrated projected savings.
- APPA contact other Council of Higher Education Management Associations (CHEMA) organizations and inquire how they select the sites for their annual meetings and educational conferences.
- APPA outline and discuss additional ways for the regions to be involved in the Annual Meeting (for example, the host committee, spouses program, outreach to international attendees, on-site logistics).
Joe Rubertone noted that APPA cannot truly produce an "international" annual meeting with the old model and mode of thinking.
RECESS
In view of APPA's 1999-2000 fiscal year and the outstanding work of the staff, Lander Medlin proposed an aggregate staff bonus of $30,000. She felt that it should be discussed before presentation to the full Board at Fort Worth. The APPA staff persons were dismissed while the Executive Committee privately discussed the proposal. Considering the very positive financial results of APPA's Fiscal Year 1999-2000, the Executive Committee will recommend to the Board a $30,000 bonus to recognize staff efforts. The Executive Committee agreed to record the bonus expenses in APPA's Fiscal Year 1999-2000 audit figures. This recommendation is subject to approval by the APPA Board of Directors at its July 14, 2000 meeting in Fort Worth, Texas.
- PRESIDENT'S REPORT AND UPDATE ON ACTION ITEMS
Maggie Kinnaman, APPA President
President Kinnaman asked to defer discussion related specifically to international members until later in the meeting.
Association of University Directors of Estates (AUDE) Conference
President Kinnaman gave a brief report of her trip to the AUDE Conference held April 15-19, 2000 in Swansea, Wales. The conference was attended by approximately 110 members, 30 partners, and 30 business partners. There are many opportunities for collaboration between AUDE and APPA. President Kinnaman had the honor of presenting Vic Slater, AUDE's current Chairman, with a plaque thanking AUDE for its contribution to APPA's ability to "become a Global Partner in Learning."President Kinnaman reported that historically, AUDE has focused its conference topic on technical areas and has just recently identified the need for more topics addressing leadership and people skills. President Kinnaman co-presented a closing plenary session with a consultant hired by the four funding councils in the United Kingdom. Her subject was continuous improvement and the voluntary use of S.A.M.
From her participation and interactions at the conference, President Kinnaman perceived that AUDE is very receptive to strengthening its relationship with APPA and identifying opportunities for collaboration. Some ideas include:
- Giving increased attention and recognition to international protocol (discussed more fully later in the meeting). APPA could recognize international visitors at the APPA Annual Meeting. A greater effort could be made to welcome, nurture, and offer hospitality through a buddy system at the APPA Annual Meeting. APPA could also invite the AUDE Chairman and the AUDE host to the APPA Board dinner.
- Formalizing the association with AUDE through the crafting of a strategic alliance identifying areas where both groups would like to collaborate.
- Providing AUDE with a complimentary subscription to the Facilities Manager magazine.
- Sending training and workshop announcements to AUDE.
- Linking APPA's web site to AUDE's future web site.
- Asking AUDE to contribute articles to Facilities Manager magazine.
- Inviting AUDE to present at APPA's Annual Meeting. AUDE has offered to share its statistics project with APPA members or the Board at the Annual Meeting in Fort Worth.
- Asking AUDE to contribute a chapter to the upcoming S.A.M. publication. AUDE has also offered to do this.
President Kinnaman was excited by the wide array of opportunities for collaboration with AUDE. She believed forming a strategic alliance with AUDE would add tremendous value to APPA's ability to move closer toward the realization of its strategic plan.
Strategic Assessment Model (S.A.M.)
President Kinnaman reported that the Strategic Assessment Model (S.A.M.) survey is being finalized and will be available and refreshed through the APPA web site. A letter soliciting the continued participation and support of last year's survey participants has been sent. President Kinnaman is hopeful that some preliminary results will be available for the Annual Meeting in Fort Worth. Furthermore, there will be S.A.M. workshop at the Annual Meeting.ACTION ITEMS
An action list matrix was created to improve the Committee's effectiveness regarding follow up. - President Elect's Report
John Harrod, President-Elect
John Harrod said that he would like the Vice Presidents to discuss how their respective committees will expand upon APPA's goals within the strategic plan. Using the same "road map" as last year, he asked the Vice Presidents to assign measurable annual activities to each goal statement. Therefore, the committees will be able to track the progress of these activities at the end of the coming year.
John Harrod requested that the Vice President bring their reports and action items to the Wednesday, July 19, 2000 Board of Directors meeting. They should be prepared to give a brief report of what their respective committees will attempt to accomplish in the coming year.
- VICE PRESIDENT, EDUCATIONAL PROGRAMS REPORT
Gary Reynolds, Chair (along with Lander Medlin, Executive Vice President)
Annual Meeting
Lander Medlin gave an overview of preparations for the Annual Meeting. Lander highlighted the "schedule-at-a-glance: which is attached for information and review of the detailed activities, events, and programming.As a reminder,:
- The Executive Committee will meet from 1:00 - 5:00 p.m. on Thursday, July 13. Committee members need to be in Fort Worth early on Thursday, July 13.
- The Board of Directors Breakfast is Friday, July 14 from 7:00 - 8:00 a.m. The Board of Directors Meeting is from 9:00 a.m. to 5:00 p.m.
- The By-Laws Committee and Planning Committee will meet from 8:00 - 9:00 a.m. on Friday, July 14. The Nominating Committee will not meet.
- On Saturday, July 15, a plenary session prior to the meeting of all committees and task forces will be held at 7:30 a.m. where breakfast is served. There will be a brief orientation and charge given by the President. The Committees will meet from 8:00 a.m. - 12:00 noon.
- It was noted that new committee members will need to be notified and invited to the Saturday meetings. Appointment letters must be sent out.
- A special pre-conference session sponsored by Oracle and AssetWorks will be held on Saturday, July 15, from 1:00 - 5:00 p.m. at no cost to APPA nor its members.
- The First Time Attendees Reception will be from 5:30 - 7:00 p.m. on Saturday, July 15. A formal invitation will be sent to the first time attendees inviting them to the reception. There will be a brief overview of APPA followed by the introduction of the Presidents, Board of Directors, and international attendees. This event will be sponsored by ServiceMaster.
- The Global Partner Reception occurs on Sunday from 5:30 - 6:30 p.m. During this time, APPA will recognize APPA's business partners who have contributed to APPA throughout the year and towards the Annual Meeting.
- The Regional Presidents' Meeting is scheduled for Tuesday, July 18, from 11:30 a.m. - 12:30 p.m. The President and President-Elect should be in attendance. (Lander Medlin will create the agenda.)
- The Board of Directors will meet Wednesday, July 19, from 8:00 a.m. till 1:00 p.m.
RECESS
The APPA investment policy was distributed to the Executive Committee. The committee members were asked to familiarize themselves with the document prior to attending the Annual Meeting in Fort Worth.
- VICE PRESIDENT, PROFESSIONAL AFFAIRS & CHAIR, AWARDS AND RECOGNITION COMMITTEE REPORT
Vice President, Jack Colby
Award for Excellence
In February, the committee voted to award both institutions pending site visits. Site visits were completed for Duke University and University of Southern California. Jack has talked with Steve Glazner, APPA's Director of Communication and editor of Facilities Manager magazine, regarding publicity. Tentative plans include a very simple announcement in the July/August edition of the magazine followed by a more detailed article with photos in the September/October issue.The committee received the University of Cincinnati's submission which the committee members are currently reviewing. This raises another issue - extended delays in recognizing winners of the award. Should University of Cincinnati receive the award, over one year will have elapsed since the date they submitted their materials. As a result of this recurrent issue, the committee is recommending a new time line which would establish a February deadline for AFE submissions; thus, enabling award winners to receive their recognition at the Annual Meeting.
Jack Colby has served as a member on the NACUBO awards committee (HEAP). He has carefully reviewed their process and model. He has used it as a model in revising the AFE process for APPA. When Jack finishes the writing of the promotional piece, it will be given to Medea Ranck, APPA's Director of Marketing and Outreach, who will perform the layout and final editing. The committee is close to completing the new criteria for the AFE. There are some challenges with writing the sample FMEP report which is more difficult given the new criteria. The text needs to be fleshed out and refined in order to produce a smooth and logical process. However, the new process may require additional training of the team leaders. Lander Medlin suggested that the Annual Meeting in Fort Worth might be an appropriate time and forum to assemble a group of former FMEP team members and leaders to evaluate the new criteria, provide feedback and suggestions related to the creation of an orientation packet.
Awards and Recognition Committee
The Awards and Recognition Committee met April 14 -15, 2000. During this time, they trained four new members, updated the awards inventory, created a draft format for the APPA Fellows Program, and added the recognition of the graduates of APPA's Institute for Facilities Management and the PLC Academy programs.- The committee evaluated eight nominations for Meritorious Service Award and eleven for the Pacesetter Award. The evaluation process was completed, the results tabulated, and the names of ten individuals (3 - Meritorious Service, 7 - Pacesetter) were forwarded to the Board of Directors for their approval.
- The Executive Committee discussed the need to clarify the process surrounding the awards approval process.
Action item: The by-laws need to be reviewed and updated especially regarding the awards and recognition process.
- Jack Colby stated that the Awards and Recognition Committee concluded that, given the scope and amount of the committee's work, it should meet on a regular annual basis. A BPR will be prepared for Board action at the July meeting.
- After a brief discussion regarding whether to create a special award to recognize exemplary contributions by APPA staff persons, the Executive Committee concluded that giving such awards fell under the domain of the President's Award.
- VICE PRESIDENT, INFORMATION SERVICES REPORT AND UPDATE
Joe Rubertone, Information Services
Rex Dillow Award
Joe Rubertone reported that the packets have been sent out. They are due back by May 15.APPAlist
The APPA list serve continues to be very active. Steve Glazner has assumed responsibility for the list since Alycia Eck's departure.Facilities Manager Magazine
Facilities Manager magazine continues to be a valuable resource to our membership.1997-98 Comparative Costs and Staffing Report (CCAS)
The CCAS is ready in both book and CD rom formats. APPA has received one negative comment regarding the timing of the book. Joe Rubertone agreed that the CCAS needed to be produced in a more timely matter so that the data is less than a year old. He projected that the 1999-2000 issue should be out by January or February 2001. Joe reported that Tom Harkenrider and Laura Long are a great asset in assisting APPA to produce the CCAS in a substantive and timely manner. - SECRETARY-TREASURER AND CHAIR, MEMBERSHIP COMMITTEE REPORT AND UPDATE
Phil Cox, Secretary - Treasurer and Chair, Membership Committee
Report from APPA's Director of Member Services
Dina Murray, APPA's Director of Member Services, reported that there were 48 new institutional members in 2000; however, there are 12 institutions that have dropped their membership. They have been contacted as to reason(s) behind their decision.
Historically Black Colleges and Universities (HBCUs)
Phil Cox reported that Lander Medlin, APPA's Executive Vice President, and Dr. Sam Polk, Director of Physical Plant, Tennessee State University, sent out a letter to the HBCUs which do not belong to APPA and offered them a one year complimentary membership in APPA. Of the 110 HCBU's, only about one-third presently belong to APPA. There has been a fairly good response to the letter. However, the real challenge will be to retain them. Special efforts will be made to outreach to these schools and their facilities officers.The Executive Committee had a brief discussion related to the membership database. Chong-Hie Choi, APPA's Director of Administration and Finance said that APPA is still working with the consultants to correct some of the data problems, improve the quality of the data, and to reduce the wait time for reports
- SENIOR REGIONAL REPRESENTATIVE, REPORT TO THE EXECUTIVE COMMITTEE AND UPDATE
Mike Besspiata, SRAPPA, Senior Regional Representative
Historically Black Colleges and Universities (HBCUs) A letter was sent out to the regions asking them to waive the registration (one time) for HBCUs to their annual regional meeting. The initial response was positive. APPA hopes this will increase HBCUs' participation at the regional level as well.
- EXECUTIVE VICE PRESIDENT'S UPDATE
Lander Medlin, APPA Executive Vice President
Communications Audit
Lander Medlin stated the importance of periodically conducting a communication audit. This should help the APPA office to better understand what our membership wants in terms of content and how they want that content delivered. The goal is to complete the audit next summer. She anticipates having some preliminary responses by February 2001. Dr. Dean Kazoleas, Illinois State University and Insight Research, will be contracted to conduct the audit. He recently completed a communications audit for MAPPA. Dr. Kazoleas will run a brief focus session for the Board of Directors at its Wednesday, July 19 meeting.EPA
EPA has become extremely aggressive in terms of compliance. There is also much disparity in terms of both interpretation and enforcement of certain laws, regulations, and standards. Lander recently had some very productive meetings with EPA officials in the Washington area. She believes that our membership needs reasonable checklists and an understanding of both priorities and which violations will incur the greatest fines. She found the officials at EPA to be very open. Lander will talk with John Harrod to see if APPA should appoint a task force to work with these EPA officials in creating a checklist and priorities worksheet for our members. A group of individuals from APPA who will work determinedly with EPA is needed.Collaboration with Other CHEMA Organizations
NACUBO, and APPA are planning to co-locate their annual meetings at Opryland in 2003. Lander requested the support and assistance of the Executive Committee members and the Board to begin promotion of this APPA meeting to the membership. SCUP, NACUBO, and APPA are planning to co-locate their annual meetings in Hawaii in 2006. Lander is also working toward the collaborative delivery of our leadership program to other education associations as well. NACUBO wants to participate. ACUTA and NAEB may also join APPA and NACUBO.Emergent Building Technologies (EBTC) Conference
The Emergent Building Technologies Conference is scheduled for February 12-13, 2001 at Bally's Resort in Las Vegas, Nevada. The response so far is great. One of the ideas under consideration is whether we will have our winter Board meeting in Las Vegas prior to the conference and then attend the EBTC. CSI and NSCA are getting good rates for this time of year by keeping the hotel rates in the $150 range. -
OLD BUSINESS
- The idea of a one-time data collection was tabled. APPA will continue to conduct CCAS on a regular, annual basis.
- For the short term, the PLC advisory committee will function as a task force.
- The President's Awards for the Annual Meeting have been finalized.
- The press releases for the new APPA President-Elect, Vice President for Information Services, and Vice President of Educational Programs, will be disseminated after the Annual Meeting.
- New K-12 membership representatives from the permanent committees have been selected and finalized.
- NEW BUSINESS
- Direct Paid Employee Institutional Representative
Mike Besspiata introduced the discussion. According to the bylaws, employees who are not direct paid employees of the institution should not serve as the institutional representative. There was a spirited discussion on the topic with a great diversity of opinion. Although there was no consensus on how to resolve this issue, most parties agreed that this matter must be approached slowly and cautiously. It was suggested that perhaps the senior reps could be asked to join the junior reps at the morning meeting of the By-Laws Committee to begin the dialog. - Physical Plant Crafts Association (PPCA)
There was a meeting requested by the Physical Plant Crafts Association (PPCA) to discuss the potential of forming a strategic alliance. PPCA represents a number of mid level plant employees. Their purpose and focus is education and information. Lander, along with Wayne White, , met with several leaders from PPCA at the PCAPPA Tech 2000 conference. Lander believes that PPCA is providing a valuable service and alignment would mutually beneficial. PPCA will probably approach APPA within a year or so to discuss a formal alliance. - Sheet Metal and Air-conditioning Contractors' National Association (SMACNA) Relationship
Lander Medlin reported that she also had a meeting with SMACNA. Again, there seemed to be interest to align itself with APPA. The consensus of the Executive Committee was to focus on CHEMA groups (like SCUP and NACUBO); however, partnering to exchange technical and educational programs and publications would be advantageous. - L3Ratingsource.com
APPA is getting inundated with proposals from dot.com and e-commerce companies. Lander will continue to monitor and use a couple of member institutions as a beta test to determine the value to the full membership. - University of Pennsylvania/Trammel Crowe Situation
Hod Wells called and asked if the Board would like to consider appointing a task force or committee to evaluate the University of Pennsylvania/Trammel Crowe situation and what could be learned from it. The committee felt Hod should take the lead on a case or feasibility study. It was also suggested that perhaps Hod could be introduced to the independent writer APPA originally asked to write an investigative/research piece. Perhaps, the two of them could collaborate in the preparation of an article for the magazine. - Protocol for International Members
President Kinnaman solicited committee feedback toward improving APPA's relationship and sensitivity to international members. The suggestions included: - Arranging local host(s) for international guests to assist them with logistics in advance of their arrival at the Annual Meeting.
- Mentoring provided via a Board member.
- E-mailing international guest(s) in advance to the Annual Meeting and inquiring if they would like to visit a U.S. campus
- Recognizing international officers at the international reception.
- Recognizing international guest(s) at the breakfasts and banquet.
- Scenario/Futures Planning Session There was a brief discussion related to the logistics of the Futures/Scenario Planning session occurring May 7 - 8, 2000.
- Direct Paid Employee Institutional Representative
- Meeting adjourned.
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