Mad River Cooperative
Finance Committee Meeting (Teleconference)
November 9, 2007
Attendees: Chairman Eric Schoenholz, Andrew Snow, Andy Dulik, Lars Bruns,Deb Steines, Jed Kalkstein, Pete Ludlow, Roy Liu, and Jamey Wimble.
The telephone conference was call to order by the Chair at approximately 11 am.
Review and Approval of the Coop Audit
The primary function of this meeting was to review the details of the Coop Audit as prepared by Mudgett Krogh-Wisner, P.C. CPA’s.Overall it was noted that this financial report is distorted (from our normal operating accounting) by the large influx of Donations and Grants collected for the Single Chair.From an accounting view all of these funds are treated as income.
The Audit was reviewed and discussed as follows:
<![if !supportLists]> i. <![endif]>The note is somewhat confusing and is really trying to note the distinction between cash on the balance sheet at 9/30 and the bank balance at 9/30.
<![if !supportLists]> ii. <![endif]>The difference was a large check to CTEC for the Single and checks to other vendors which were in float. This cash can’t be counted even though the cash still showed on the bank account balance.
<![if !supportLists]> i. <![endif]>In round numbers ……
<![if !supportLists]> ii. <![endif]>$1,653K – construction in progress – charges for the Single up to 10/1 (not the total cost of the project) and other projects (underground electrical and other small stuff)
<![if !supportLists]> iii. <![endif]>Minus the approx. $100K in other projects which were included in the line above
<![if !supportLists]> iv. <![endif]>Minus $424K in Accounts payable
<![if !supportLists]> v. <![endif]>Minus $400K Notes Payable (Mortgage)
<![if !supportLists]> vi. <![endif]>Minus $670K Grants Received – amount already paid to CTEC
<![if !supportLists]> vii. <![endif]>= $59K - Doesn’t tie in exactly but close enough considering scrap and depreciation
Share Redemption – what do we recommend to the Board? – Resume or not?
The committee briefly discussed the fact that some Board members and the staff are getting pressure to resume Share Redemptions.There are currently 43 outstanding requests for redemption with a value of about $58.5K.We continue to recommend the suspension of share redemptions; however the Board may grant approval of one-off hardship requests.The committee feels very strongly that nothing should be done with redemption until we know our cash position after the Christmas / New Years Holidays.The committee is also concerned about the need to pay $84.5K to bondholders (Double) in June.There is also concern on how to “meter out” redemptions if some cash is available.Eric S. volunteered to put together a “financial barometer” which the committee could review and the Board could use to evaluate the timing of future redemptions.
The meeting adjourned at approximately noon.