| SUBMITTED AGENDA ITEMS:
Review of September Financials
· Presented of the August financial statements. Discounts have
been running high. This is due to large amounts of prepared foods. Labor
as a percentage of sales continues to do well. Though it did increase
in August, YTD is still well within our percentage. Non-operating income
has gone up considerably due to the rack credit. Despite the 500,00 dollar
discrepancy between budgeted and actual sales, YTD net income is at 40,000.
· Discussed trend impact, adjustments and considerations. There
has been a definite impact in sales at the South store due to the bridge
closure. Fortunately, it appears that many of these sales are going to
the North store.
· Reviewed the September Sales Graph. The North store was very
close to reaching the budgeted sales.
Continue Retreat Discussion of Bottom Line 'Special' Financial Reports
for Board
· Discussed introduction of simpler bottom line reports related
to possible expansion.
· Discussed reintroduction of Pete Davis' market study.
· Will discuss this further at the November meeting.
Begin Review of Proposed '07 Budget
· Compared sales projections to pro forma sales projections. The
overall sales projection is a composite from collaboration with buyers
to project each individual department. The buyers want their projections
to be reasonable and achievable rather than being aggressive.
· Financial Manager presented major financial issues and assumptions.
The loss of HP money in the local economy has been felt throughout the
entire year and has begun to stabilize.
· Discussed growth expectations. Median growth within the cooperative
grocery industry is 11 percent.
· More Owner Appreciation Sales Days should provide the budgeted
increase in sales.
· Discussed the effects of inflation on the growth rate.
· Discussed labor percentages. Janitorial expenses have been moved
from labor to other retail operating expense.
· There is an increased allotment for consulting expenses.
· Discussed the commissary operation changes. These changes will
allow us to monitor the expenses associated with our prepared foods. The
new items will appear on monthly reports
· Financial Manager presented the capital and non-ops budgets.
Pending decision to use NCGA training, Board Discretionary could increase
by 5,000.
· The large increase in Non-operating expenses is due to the increased
number of owner sale days.
· The budget for Special events covers the Calzone booth expenses.
Review Financial Contingency Plan
Reviewed and prepared for approval.
Meeting adjourned: 6:35 pm
|