What You Should Know Now

Barbara Graves, Wife of Black Enterprise Publisher, Dies at 74

Barbara Kydd Graves, a guiding force of Black Enterprise Magazine and wife of founder Earl G. Graves, Sr., passed away May 25, 2012 at the age of 74.  Ms. Graves served Black Enterprise magazine for over 40 years as editorial director, circulation director, chief financial officer and through other positions as she helped guide the magazine’s success. 

Ms. Graves was also a strong supporter of the NAACP, founded in 1909, along with her husband, Earl G. Graves, Sr., who won the Spingarn Award in 1999 for outstanding achievement by a person of color.

“Barbara Graves was truly devoted to the mission of empowering communities of color and promoting economic empowerment,” stated Benjamin Todd Jealous, NAACP President and CEO. “Her contributions to Black Enterprise Magazine inspired countless young businessmen and businesswomen of color, and helped open doors for so many people. We honor her memory.”

“Barbara Graves played a vital role in the lasting success of Black Enterprise Magazine,” stated Roslyn M. Brock, NAACP Chairman. “She dedicated her life to advancing opportunities for minority entrepreneurs. She leaves behind a living legacy as a loving wife, mother and grandmother, and as the matriarch of an important institution. She will be sorely missed.”

“The world is saddened by the passing of my dear friend Barbara Graves,” stated NAACP New York State Conference President and National Board of Directors Member Hazel N. Dukes. “She served others in so many proud ways, as a wife, a mother and a loving grandmother. Our thoughts and prayers are with her family in this time of mourning.”

Black Enterprise Magazine was founded in 1970 as the premier business news and investment resource for African Americans. Today it holds a readership of 3.7 million people.

Community Bankers Association of Georgia Selected for Study on the Impact of the Dodd-Frank Act on Community Banks

The Community Bankers Association of Georgia (CBA) - One of Four State Associations Selected For Nationwide Study on the Impact of the Dodd-Frank Act (DFA) on Community Banks

The United States Government Accountability Office (GAO), an independent, legislative-branch agency, is examining the impact of the Dodd-Frank Wall Street Reform and Consumer Protections Act on community banks. The DFA is a massive bill which became law on July 21, 2010, and banking regulators have written or are currently writing regulations to implement the Act’s provisions, many of which will in the long run affect consumers. The GAO selected the CBA of Georgia as one of four state associations nationwide to participate in this community banking study.

Members of the CBA Executive Committee and staff provided input on a very detailed survey examining the potential benefits or challenges the DFA may directly or indirectly have on community banks and their ability to lend to small business. After the survey results were compiled by the CBA, representatives from the Association to include staff and bankers participated in a teleconference with four GAO analysts to provide additional feedback on various areas of the DFA. Several bankers on the teleconference were able to relate personal, individual bank experiences to illustrate issues they were having in their particular bank and their communities they serve.

The results of the study will be published by the GAO mid-September. CBA Executive Committee members are: Mark Stevens, State Bank and Trust, Macon; Dan Oliver, Vinings Bank, Smyrna; Charlie Curry, First State Bank of Randolph County, Cuthbert; Dales Morris, First National Bank of Coffee County, Douglas; Derek Williams, First Peoples Bank, Pine Mountain, and Ed Cooney, Affinity Bank, Atlanta.

City of Atlanta Victorious in Appeal of Airport Concessions Contract Awards

On Tuesday, Procurement Appeals Hearing Officer George F. Maynard denied SSP America, Inc.’s protest of the award of five large food and beverage contracts to other companies. Hearing Officer Maynard issued a thorough, detailed and well-reasoned 25-page Order after three full days of hearing, during which he heard testimony from eleven witnesses and reviewed hundreds of pages of exhibits. He concluded: “The solicitation for the Large Food Packages was conducted in accordance with applicable law and the terms and conditions of the RFPs. . . . There is no evidence that the procurement process should be voided as ‘unfair, fraudulent, or corrupt,’ as alleged by [SSP America].”

Losing proponent SSP America has insistently argued, without a single shred of supporting evidence, that the airport concessions procurement process was flawed, and that contracts were awarded based upon political relationships, rather than merit. Hearing Officer Maynard expressly rejected SSP America’s unfounded accusations, concluding that “There was no evidence presented as to any specific wording in the RFPs (whether drafted by Mayor Reed or otherwise) that would work to the advantage of any given proponent over that of [SSP America]. .... None of the evidence, circumstantial or otherwise, established a link between a campaign contribution and a contract award, or how such a link would have operated to influence the Evaluation Panel, the OCC, the DOF and/or the DOP.” He specifically noted that, “There was absolutely no evidence presented which would support any allegations of a ‘pay to play’ culture in connection with this procurement.”

From the moment SSP America learned it would not be awarded a contract, it has continuously attempted to derail the airport concessions procurement process in both administrative and judicial arenas. Previously, Judge Cynthia Wright, Chief Judge of the Fulton County Superior Court, denied SSP America’s attempt to prevent the City from signing the concessions contracts, finding that the procurement process is “intended to be in the interest of the public, not that of an aggrieved, frustrated bidder.” Hearing Officer Maynard’s Order denies SSP America’s latest attempt to undermine the procurement process.

The City is hopeful that SSP America, having now lost three legal challenges to this procurement process in as many tries, will finally cease its litigious and wasteful efforts to overturn the fairest, most open and transparent procurement process in the City’s history. If it does not, however, the City will continue to respond as appropriate to any further challenges that may come.

The new Maynard H. Jackson Jr. International Terminal, complete with new food and beverage and retail concessions outlets, is scheduled to open on May 16, 2012. The City expects the airport to realize net annual revenue in the amount of $51.1 million as a result of the new food and beverage contracts. This represents an increase of over $23 million, annually. The new International Terminal will be a signature addition to the Hartsfield-Jackson Atlanta International Airport - the world’s busiest airport and the number one economic engine in the City of Atlanta and surrounding metropolitan area.

Meet our 2012 Superwomen @ Spelman!

Human Tragedy and Triumph = Ratings Magic

I am always fascinated by the impact of human emotions on our consumer behavior – whether those emotions are inspired by tragedy or triumph.  Two television broadcasts made ratings history recently, one because of a tragedy and one because of a triumph:  the 54th Annual Grammy Awards on CBS and the contest between the Los Angeles Lakers and the New York Knicks, February 10, on ESPN.

Nielsen research has proven Americans love sports and music programming. African- Americans are typically well-represented in both.   The Grammy Awards have been a viewing favorite. Research backs up the common sense notion that Blacks tend to gravitate to programming where there are larger numbers of people who look like us – but this year, the number of us who watched the Grammys was almost off the charts (no pun intended).    The recent 54th Annual Grammy Awards attracted nearly 40 million viewers (39.9 million), which made it the largest Grammy audience since 1984 and the second largest in the history of the broadcast.  Of those 39.9 million viewers, African- Americans made up 6.21 million.  That means a whopping 60% more Black folks watched the Grammys this year than last (3.7 million out of a total viewership of 24.7 million in 2011).
 
Some people like me may tune in to see who’s wearing what.  How fabulous will our favorites be, or how outrageous?  Others are true music aficionados.  While the why for this year’s phenomenal success of the Grammys has not yet been officially analyzed, I suspect that the tragic news of the sudden death of beloved music icon Whitney Houston the night before piqued the increased interest.  If you were like me and my friends, we were reeling with disbelief.  Tuning into the Grammys seemed to offer a kind of solace and comradery in our collective desire to pay homage to a musical phenomenon who was one of our own.

Now, in the interest of full disclosure, the show didn’t hold my attention for long beyond the luscious LL's prayer for "our fallen sister" (a very nice touch). But after his intro and having glimpsed the outrageous outfits of Nicki Minaj, Gaga and the sweet acknowledgements from Alicia Keys and Bruno Mars, I begged my Facebook friends to wake me up when they got to the Whitney tribute. Someone from Ft. Wayne, Ind. (my hometown) actually alerted me when Glen Campbell's tribute came on. (You couldn't grow up in the Fort without being inundated with his music back in the day). So I loudly and proudly sang along to the tribute.  My son watched me with his mouth hanging open in disbelief. "Really, mom?! Seriously, you LIKE this country music?" (If he reacted like this to my Glen Campbell tribute, he does NOT want to be around when my sister, his Aunt Natalie, goes berserk over Kenny Rogers).  Following Jennifer Hudson’s moving tribute of “I Will Always Love You,” and after fighting back tears, I clicked off.

On the flip side, Americans love to cheer on an underdog, a “Rocky,” a champion who rises from the ashes of obscurity to achieve victory.   In two words:  Jeremy Lin. It was my basketball-playing son who turned me onto the phenomenon that was taking place with the undrafted 23-year old, Harvard-educated Asian-American from California and his fortuitous match-up against the New Jersey Nets. Lin has averaged 27 points per game – launching him from bench warmer to global superstar.  In addition to a 73 percent increase in viewership of Knicks games on MSG and ESPN in New York, nationally the February 10 game between the Knicks and the Lakers on ESPN was the most-watched Friday night regular season NBA game on the network, so far this season - with just over 3 million viewers.

On top of that, NM Incite (a Nielsen McKinsey company) reports that social media buzz has also hit a frenzied pitch around the world since the first February 4 game.   Even the phrase “LinSanity” has been coined.  The online chatter about Lin has surpassed conversations about the Knicks, LeBron James and Kobe Bryant combined.  Now, that's powerful.  And so are you. Because, if you follow these ratings stories, you know these surges in increased viewership are a result of people just like you and me tuning in. It's great news for the networks as well as the advertisers.  Those advertisers are dedicated to reaching us – the consumers.  Which brings me to my mantra, "Knowledge is power."  The power is in your hands, and so is the remote control.           

 

Cheryl Pearson-McNeil is senior vice president of public affairs and government relations for Nielsen.

Will you sign up for TSA's Pre-Check?

Soon you may no longer have to shuffle shoeless through the metal detector while holding up your pants. A new, faster screening program is shaking up airport security as we know it, possibly allowing select travelers to stay fully dressed—belt, shoes, and all—while passing through the security lane. PreCheck, an expedited passenger-screening program, will expand to 28 additional U.S. airports this year, according to a press release on the Transportation Security Administration (TSA) website.

PreCheck is a program that permits prescreened flyers to go through a separate, faster security line that may not involve the removal of shoes, jacket, belt, etc. Travelers who've joined the program, which is currently only available at seven test hubs, will soon be able to hustle through a streamlined security queue at 35 domestic airports. Currently, more than 336,000 people are members of PreCheck. Advertisement The program is free, although for now, it's only available to travelers flying with Delta or American at those seven select airports (Dallas, Miami, Las Vegas, Minneapolis, Los Angeles, Atlanta, and Detroit).

The TSA hopes to loop additional airlines into the program as it sets up PreCheck in more airports this year. Those who fly frequently with participating airlines, as well as members of Trusted Traveler programs such as Global Entry, SENTRI, and NEXUS, are eligible to sign up. Previously, American and Delta sent out emails to frequent flyers that contained instructions on signing up for the program, so it's safe to assume that your preferred airline will issue an email announcement with details on joining if it gets onboard the PreCheck program. United, US, and Alaska plan to participate in PreCheck by the end of 2012. Another way to join is by visiting the U.S. Customs and Border Protection website and signing up for a Trusted Traveler program. You will have to go through an initial screening process and background check. Once approved, you'll receive a special barcode on your boarding pass that will give you access to separate PreCheck boarding lanes at participating airports. Just how much time will this save you?

The TSA is tight-lipped about the exact details of the PreCheck process. According to the agency's website, "no individual will be guaranteed expedited screening in order to retain a certain element of randomness to prevent terrorists from gaming the system." So no promises. But it's probable you'll face a shorter line, as the bulk of passengers going through security won't belong to the program. Moreover, you may be able to wear your shoes throughout the airport screening process ... and your coat, belt, and jacket, too. With a tinge of ambiguity, the TSA states that some travelers might get to keep all their clothes on, while leaving laptops and plastic baggies inside carry-on bags as well. Do you plan to sign up for PreCheck?

 Source: Smarter Travel http://bit.ly/xQfTUw

Mark Your Calendars: LEAD Week @ Clark Atlanta University

The Clark Atlanta University (CAU) School of Business will present its 17th annual LEAD Week Feb. 13-17 on campus, 223 James P. Brawley Drive, S.W. This year’s theme,“Transformational Leadership: Global Investment, Innovation and Impact,” focuses on such topics including: leadership, networking, entrepreneurship and personal finance.

Highlights of the week will include the Chevron Women’s Leadership Breakfast and the Men in Business Luncheon, sponsored by PNC Bank. The week will begin with a presentation by Barb Schaefer, senior vice president of Union Pacific, and a networking reception sponsored by Turner Broadcasting System, Inc. Participating business leaders will include Kathy Daly-Jennings, head of Industry, Retail at Google; Ken Bentley, vice president of Nestle USA, Inc.; and Vernon Baker, senior vice president and general counsel of Meritor, Inc.

Maggie Anderson, CEO and founder of The Empowerment Experience, will conduct a workshop and book-signing. Chaired by CAU graduate student Tafadzwa Sithole, LEAD Week will conclude with a black-tie gala and silent auction at the Omni Hotel Feb. 17.

School of Business Dean Lydia McKinley-Floyd said, “Our economy is demanding even more for today’s business students to be prepared and positioned for success, given an aggressive and global environment. We must stress entrepreneurial thinking to help further empower students in our program, sharing with them some of the best practices and presenters throughout this week.”

Visit http://www.sbus.cau.edu/ for the complete LEAD Week schedule.

About Clark Atlanta University’s School of Business

The School of Business at CAU awarded its first bachelor’s degree in 1931. Its graduate program was founded in 1946. The School was one of the first Historically Black Colleges and Universities (HBCUs) in the nation to have its undergraduate and graduate business programs accredited by the Association to Advance Collegiate schools of Business International (AACSB). It continues to produce one of the largest classes of African-American MBAs in the world, while its undergraduate program is one of the top 10 percent producers of African-American business professionals in the nation.

IRS and your Travel Miles: Are Taxable Frequent Flyer Miles in Your Future???

You probably never paid a penny in taxes for the frequent flyer miles you've earned. I certainly haven't.

There's only one exception to the no-tax-on-miles rule, as it's been generally understood. If you win frequent flyer miles in a contest or sweepstakes, the sweepstakes host publishes an estimated retail value of the miles in the terms and conditions, and sends a 1099 form to the winner and to the IRS, which considers the prize's value to be tantamount to extra income and taxable as such.

On the other hand, there are no tax consequences for earning frequent flyer miles for day-to-day transactions, such as shopping, traveling, and so on.

But what about the miles that banks award as incentives to open checking and savings accounts? Or the miles that credit card issuers routinely give to consumers as an incentive to apply for new cards?

Until recently the prevailing assumption on the part of both mileage-earners and tax experts was that such sign-up bonuses were not taxable.

This year, however, as reported by the Los Angeles Times, Citibank began sending 1099s to customers who had received mileage bonuses for opening savings or checking accounts. And of course, copies of those 1099s were also sent to the IRS.

Citi's move—which it claims is in response to IRS guidelines—raises a host of questions and concerns.

Among them:

•Citi valued the AAdvantage miles awarded for opening checking and savings accounts at 2.5 cents each. While it's possible to get that much value for the miles when redeeming them, my estimate of the average value of a mile is around 1.2 cents. And certainly Citi paid American much less than 2.5 cents apiece for the miles. In fact, the vagaries of valuation are one of the issues that the IRS has historically cited as an insuperable barrier to taxing miles.

•What's the difference between earning miles for opening a bank account and miles earned for signing up for a credit card? If the former incentive is taxable, why isn't the latter? With the marketplace awash in lucrative credit card sign-up bonuses, this question is hardly academic—hundreds of thousands of consumers would be affected if credit card bonuses were treated like bank account bonuses.

•And if bonuses for financial services transactions are taxable, wouldn't that suggest that miles earned for other transactions were taxable as well?

According to David Lazarus, who wrote the L.A. Times story, the IRS considers the bank account bonuses to be "income miles," while other bonuses are "rebate miles." The logic of that distinction eludes me.

So, what to do? This is what Eva Rosenberg, my tax advisor and publisher of TaxMama.com, advises: "ANYTIME you get a 1099 form of any kind, report it on your tax return wherever the IRS computer expects to see the income. In this case, on Line 21, Other Income. Then, if the income is not taxable, deduct it back out, and include a statement explaining why it's not taxable." [emphasis added]

I'm sure that's solid advice. But I'm equally sure that any policy that causes so much confusion, and that requires taxpayers to report, back out, and then explain themselves, is a policy that needs to be rescinded.

Apparently Senator Sherrod Brown (D-Ohio), chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, agrees. He appealed directly to Citi chief Vikram Pandit to "end this gratuitous practice. The Internal Revenue Service (IRS) clearly stated that frequent-flier miles are not subject to income tax."

Since there's obviously disagreement as to the interpretation of the IRS' rules, frequent flyers can only hope that he and like-minded politicians will take the no-tax case to the IRS as well.

Reader Reality Check

Did you earn miles for opening a new savings or checking account in 2011? Did the bank send you a 1099 for the miles?

This article originally appeared on FrequentFlier.com.

Reed Administration Grows City of Atlanta’s Reserves to $94.4 Million [up from $7.4 million]

City’s reserve fund was $7.4 million when Mayor Kasim Reed was inaugurated in January 2010.

The City of Atlanta has $94.4 million in its general fund reserves, an increase of $87 million since January 2010 when Mayor Kasim Reed was inaugurated. The audited data was released as part of the city’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011. 

One of the primary goals of the Reed administration is to restore the city’s fiscal health to ensure future growth and encourage greater economic investment by local, national and global companies. Mayor Reed, in partnership with the Atlanta City Council, has passed two budgets with cash surpluses that included funds to hire more than 400 police officers and open all of the city’s recreation centers for young people. Mayor Reed’s administration also reformed the city’s pension plan, enabling the city to continue investing in critical public safety and operational priorities, while strengthening the city's fiscal position. The pension reform plan is expected to save the city more than $270 million over the next 10 years.

“By restoring the city’s fiscal strength, its leaders can focus on the safety and quality of life issues that matter most to residents and business owners,” said Mayor Reed. “I am proud that in the midst of the worst economic downturn since the Great Depression, the City of Atlanta has managed its finances in a manner that has led to the growth of the city’s reserve fund to $94 million from $7 million in two years. We have governed prudently, while also investing in public safety personnel and equipment, parks and recreation centers and transportation infrastructure – all without raising property taxes.”

State law requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of audited financial statements, presented in conformity with generally accepted accounting principles in the United States. The city’s FY 2011 financial statements were audited by Banks, Finley, White & Co with additional support provided by Tabb & Tabb. The goal of the independent audit is to provide reasonable assurance that the city’s financial statements for the fiscal year ending June 30, 2011, are free of material misstatement.

“Strong cost controls, targeted capital investments and conservative revenue projections have allowed the city to generate a general fund operating surplus,” said Jim Beard, Chief Financial Officer for the City of Atlanta. “The city is on its way to achieving the Reed administration’s goal of more than $100 million in reserves. Once this is accomplished, we look forward to addressing the city’s various capital and infrastructure needs in a fiscally prudent manner.” 

 

Conference in Atlanta to Study Georgia Work$ as a Possible Answer to Job Crisis

Workforce development officials and experts will gather in Atlanta (GA) on November 2 and 3, for the Georgia Workforce Initiatives Showcase hosted by Clark Atlanta University at the Hyatt Regency Hotel. The conference will focus on Georgia Work$, the innovative job creation and training program designed by former Georgia Labor Commissioner Michael Thurmond (pictured).  Georgia Work$ has recently earned national, bi-partisan praise from President Barack Obama and Rep. John Boehner, the Speaker of the U.S. House of Representatives.

“This conference will provide employers, job seekers, academicians, elected officials and labor experts with a unique opportunity to explore and examine the Georgia Work$ model. The information shared and the knowledge gained may prove to be useful in the development of a comprehensive plan to help America get back to work,” stated Thurmond.

Created in 2003 to jump-start hiring and reduce the duration of unemployment, Georgia Work$ has become a national model and a source of discussion and debate by employment and training experts across the nation.  New Hampshire, North Carolina and Missouri have already implemented programs that replicate the Georgia Work$ strategy.  Numerous other states have adopted different aspects of the program into their state employment and training systems. During the conference, labor officials from other states will explain how they have adopted and modified Georgia Work$ in their respective states.

Georgia Work$ was recently catapulted to greater prominence when President Obama proposed that it become an essential component of the American Jobs Act. The Georgia Workforce Initiative Showcase, will offer presentations and workshops that will provide academic evaluations of Georgia Work$ outcomes and how the president’s bill incorporates the Georgia Work$ strategy into the “Bridge to Work” program. 

“Clark Atlanta University is fully vested in the goals of entrepreneurship and community economic development,” said CAU President Carlton E. Brown.  “Our aim is to integrate these ideals throughout the University’s academic enterprise, and to position the University as a bridge that seamlessly connects our human, intellectual and capital resources with the broader community.”

No fee is required to attend the Georgia Workforce Initiatives Showcase conference; however, registration for the conference is required.  To register for this conference, please visit www.edccde.com  or telephone 404-503-8214 and ask for Dr. Riki Brooks, conference planner.