| SUBMITTED AGENDA ITEMS:
Review of full draft of next year's budget
· Reviewed the draft budget that will be submitted to the Board
at the January meeting. The finance committee is satisfied with the draft
budget. Toni will forward to the Executive Committee to put on the January
agenda. She will also send an agenda item to review the budget process
with the Board.
Review of Nov. Financial Statements
· Went over the November financial statements. November sales were
under budget for the month. Sales year to date will be over budget. Nov
is a non-inventory month and the COGS is estimated conservatively. COGS
will be adjusted to actual with the end of December inventory count. Payroll
is higher than it has been and is above budget for the month, but that's
partially because of the lower sales for Nov. Year to date, payroll should
be at budget. November has a
o Why is labor getting out line with the budget at the end of the year?
· Some of the reasons are increases in wages, the hiring of a front-end
manager that we haven't had before, and an additional HR person.
· Reviewed the balance sheet. Assets have increased by $134,000,
but this is offset by the borrowing of $150,000 from the Key line of credit
to pay for the rack system, which increased liabilities. The energy trust
will be giving us around $53,000 for the two stores but the project has
to be completed before that will happen.
· Reviewed the December sales graphs. December sales were strong.
The year is now ended
Review of full draft of next year's budget
· Reviewed the draft budget that will be submitted to the Board
at the January meeting. The finance committee is satisfied with the draft
budget. Toni will forward to the Executive Committee to put on the January
agenda. She will also send an agenda item to review the budget process
with the Board.
Reviewed the Work Plan
Reviewed and discussed the items on the workplan.
· Discussed adding an analysis of the criteria for deciding on
a patronage dividend and its impact on the financial statements. Agreed
to add to the workplan with a target completion date of Sept 2006.
· Will change item #10 to review existing Debt Management Plan.
· Looked at #9
o Discussed how the audit / review cycle has worked since it was implemented
five years ago. Everyone is satisfied that this cycle is adequate. If
Finance committee felt there was sufficient basis for calling for one
out of cycle, they can do so.
· Explore using a set amount for non-operations budget items rather
than percentage of sales
· Discussed what this item means and that if we still have work
to do on this. Discussed the evolution of this work plan item. Agreed
that it has been explored and that we do budget non-ops on a program and
dollar basis, which was explained it to the Board during this budget cycle.
- Done
· The Board is still looking at the Non-Ops programs and developing
criteria for deciding which programs will be funded, but that part isn't
finance committee's work.
· Develop a process for monitoring performance of the Finance Committee
on an annual basis.
o Discussed what this new charter item means
o Decided that this will be an informal verbal review
o Will add to the February calendar as an annual informal review.
Meeting adjourned: 6:35pm
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