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Mad River Glen Cooperative

Finance Committee

 Minutes of Teleconference 11/16/2006

 

Meeting called to order by Chairman Eric Schoenholz at 8:30 am

 

In Attendance:

  • Committee Members: Andy Dulik, Deb Steines, Jed Kalkstein, Mary Schramke, Pete Ludlow, Roy Liu
  • MRG Staff Members: Jamey Wimble and Eric Friedman

 

REVIEW OF DRAFT FINANCIAL REPORT / AUDIT 2005/06

 

The Committee reviewed the document and discussed the following items in detail:

  • Financial Reports
    • Cash position of $162,343 is particularly troubling due to the risk of a poor Holiday Week and the pending payment of $200k to CTECC for the Single Chair.
    • The $162,343 includes $343,896 (cash received from Customers for the next fiscal year) so our actual end of year cash was ($181,533)!
  • Notes to Reports
    • There were no questions
  • Management Letter
    • Despite comments made in the report there are no plans to change our financial controls due to the small size of the staff.It was felt that adequate controls are in place.
    • The Committee recommended that Jamey consider the suggestion to do payroll on a bi-weekly basis for the full time employees and possibly for all employees.Jamey agreed to look into it.
  • Account Reconciliation
    • Single Chair expenses of $72,085 were moved from the P/L to next year.

The Committee recommends that the Financial Report and Audit for 2005/06 be accepted by the Board of Trustees.

 

SHARE REDEMPTION AND REDEMPTION VALUE

 

The committee reviewed the current situation in regard to share redemption and value.

  • Recommended Share Redemption Policy change from our committee was not accepted by the Board.Also our legal council views the 3 for 1 to be not consistent with the By-laws.
  • Consistent with our recommendation the Board has suspended share redemptions until at least the January meeting due to the Coop’s financial position.The Board has asked our committee to make a recommendation prior to the January meeting as to when to resume redemptions.
  • The Finance Committee has also been asked to review the share redemption value due to an apparent discrepancy between past practices and the interpretation of the By-laws (Sec. 9.6).
  • The Board also asked the finance committee to calculate the “inflated value” of our share prices starting with both the $1,500 and $1.750 values.(Jamey agreed to do this.)

 

A lengthy discussion ensued involving all of these issues (and many related ones).The result of which is that further research is needed by our legal council and our accountants.(Jamey agreed to do this also.)Discussion of all of these issues will continue at our next meeting.

 

PLANNED MEETING(S)

  • Jamey agreed to circulate financial results (QuickBooks reports) for the committee to review.If there are significant issues a meeting will be held in late December.
  • The next scheduled meeting will be in early January prior to the January Board meeting scheduled on the 13th.

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