SUBMITTED AGENDA ITEMS:

Review of April Financial statements
Reviewed the sales graphs for May. The growth rate YTD continues to decline and was 9.3% on a combined basis at the end of May

Went over the April financial statements. Sales were $1,075,367 for April, which is below budget by $42,514. Payroll remained in line with the budgeted percent of sales even though sales were below budget. Net Income from Operations was $50,331, $8,368 below budget. Total Non-Operating Income & Expense was better than budget by $2,436 resulting in a Net Income for the month of April of $23,960 which was $5,932 below budget.

Net Income/Loss for the Year-to-Date was a net loss of (-$5,772) which was better than the budgeted net loss of (-$18,290) by $12,518.

Cafeteria plan payments are based on estimated use over the plan year. There is an end of year adjustment based on the claims performance actually experienced.

Staff bonuses are based on a written policy, which outlines whether staff qualifies for a bonus based on the financial performance of the store during each individual quarter. The bonus, if qualified for, is budgeted at $22,000 each quarter in 2006. The percentage each employee receives of the bonus is based on the number of hours they worked during that quarter. Staff did not qualify for a bonus the first quarter of 2006 based on our financial performance.

There will be extra owner sale days in July, Sept and Nov that weren't budgeted for. We don't know how that they will impact the owner discount expense line; it's one of the things we hope to find out during the remainder of the year. Hopefully the extra sale days will increase overall sales and the expense will stay in line with the budget as a percentage of sales. That expense, year to date, is currently .02% higher than budgeted. We're hoping this trial run will turn out to be positive overall. We'll be analyzing the financial impact of the extra sale days through the rest of the year.

Executive Session Begins 5:45
Executive Session Ends 5:55

New Board Member Training Process
Marty will be coming to the June Board meeting to do his annual financial training. He will do a second training with the Board when the budget is presented near the end of the year.

The Finance committee would like to have training at one of their meetings with Marty. It would be good to do it when the 2nd quarter financial statements are available at the August meeting. Will check with Marty to see if he would be available in August or September.

Review of L11 Policy Language
At the May Board meeting there was a motion passed asking the Finance Committee to review the language of policy L-11 focusing on the standard practice language. Passed out a copy of L-11 to each of the committee members who will look it over and bring ideas back to the next Finance committee meeting.

Meeting adjourned: 6:20pm