STANDARD BUSINESS:
Owner Comment: None
Approval of this Agenda: Approved
Announcements & Affirmations: None
Calendar and Timeline: The next meeting will be August 2 at 5:00pm.

SUBMITTED AGENDA ITEMS:

June Sales Graphs
· Our biggest concerns now are comparing the growth rate with the budget.
· North store is tracking with the budget, that is, it is going up and down as the budget does. North is 9.1%
· South is tracking off the budget, dropping down a bit. This is concerning. The south store growth rate was 2.8 percent. We are trying to find ways to increase sales as well as control costs. We may be feeling the other mainline grocery stores entering the organic market.
Review of May Financials
· Sales: we missed by 88,000 this month. Nearly 270,000 for the year. If trends continue, we can assume being 500,000 below our target of 12,885,000.
· GPM 37.07%. This is almost a half percent less than what we budgeted. Discussed reasons why.
· Payroll expense is well under control for both the month and the year. There is a 44,000 savings in payroll as we the bonus wasn't qualified for or paid out for the first two quarters; this is almost 1/3 of the savings. June wage reviews will take place; we can afford this.
· Other operating expenses of 121,000 exceeded the budget for the first time this year. Part of this is the implementation costs of the new time-clock system. Also we had Zing Train. YTD we are doing fine.
· Non-operating expenses are a bit more than budgeted, but are well in line with the budget.
· Net income is good YTD.
· Total assets is up from the previous year, but down from the previous month. This is because of depreciation.
· PPE dipped because of a rebate we received. The rebate on the rack system was $108,000. This rebate had to be taken against the value of the asset.
· Current liabilities went down by 35,000. Long term down slightly.

Discussion of Property Purchase Financial Impact
· No updates. Still being handled by lawyers.

Finance Committee Training Set for Sept.
· Marty scheduled for the September meeting. He will go over the quarterly financials for the 2nd Quarter at that training..

Discussion of 2006 Calendar / Work Plan
· Financial contingency plan - scribe will email out the electronic version to everyone to review.
· The Board has assigned a review of L-11. This will need to go on the plan.
· Planning for growth will need to be considered. What will need to be seen and in what format?
· Need to develop a plan for performance monitoring.

Meeting adjourned: 6:22pm