Finances

The License Agreement between the Purebred Arabian Trust (PAT) and the Arabian Horse Association (AHA) states that one-third of the gross revenues derived from purebred registration, including registration fees, transfer fees, service fees and administration fees be paid to the PAT. These revenues are paid by AHA to the PAT on a quarterly basis following the fiscal quarter in which they were earned and deposited into a reserve fund managed by the PAT Trustees.

Once the Market Development & Promotion (MDP) Committee approves a market development or promotional activity or plan, they solicit approval from the PAT to fund the implementation of those approved projects. As AHA’s MDP activities are implemented, expenses are paid on vendor invoices out of the AHA General Fund. Each quarter, following payment of those expenses by AHA, an invoice is sent to the PAT for the amount of expenses incurred by AHA for those pre-approved MDP activities during the previous quarter. The PAT then reimburses AHA for those expenses.

On an ongoing basis, revenues paid into the PAT reserve fund that remain in that fund over and above the amount spent in any given year remain in that account until future MDP projects are implemented.