Finance Committee Meeting: December 10, 2008

The Mad River Glen Cooperative

Finance Committee Conference Call

December 10, 2008

Telephone Conference began at 8 am

Attending: Chairperson Eric Schoenholz, President Jamey Wimble; Jed Kalkstein; Pete Ludlow; Roy Liu; Tom Cagnina, Lars Bruns, Ken Frey, Leigh Michl, and our Auditor Ray Jennett

Absent: Andrew Snow; Andy Dulik; Jeff Paduch; Betsey Jondro, Deb Steines

2008 Financial Audit

Jamey led the committee through the documents that are part of the Audit.

·        P&L

o       The Audit P&L was compared with the “Budget P&L” to get a cleaner view of the profitability of operations and performance to the original budget. We ended the year with a “Budget” NOI of $154,823 which is very close to what was forecast at the end of the season. We reviewed the accounting requirement that donated funds from PTV need to be income to the Coop. These funds, the Single Chair expenses and the costs related to the retail store are the primary differences between the Audit and the “Budget” P&L.

·        Balance Sheet

o       The net shareholder value per share has grown to $1,490.76 primarily due to the donations to the Single Chair.

·        Letters to the Board

o       Ray explained the need for these letters as part of the Audit process and regulations.

o       He noted two suggestions for consideration from the Management Letter:

§         Jamey has already moved our funds to 3 separate banks in order to be sure we are fully covered by FDIC insurance. This addresses one of the suggestions.

§         The other involves changing our payroll operations to bi-weekly rather than weekly in order to save processing costs. Jamey reported that many of our employees, particularly the part timers, live pay check to pay check so this change may be challenging to them. He has asked the department heads to review the change with their employees to gauge the reaction. Depending upon the reaction we may go to bi-weekly pay at the first of the year.

o       Ray answered questions about the 5 Audit Adjustments that needed to be made and discussed the need to address the accrual of the property taxes.

o       No major material weaknesses were found in the Audit.

The Finance Committee vote to recommend approval of the Audit to the Board was unanimous.

Ray Jennett signed off the call with thanks from the Committee.

Capital Expenditures (CAPX)

The Committee reviewed the CAPX spending of $120,724 out of the approved amount of $132,500. Some approved items ended up being minor repairs so they were expensed rather than carried as capital expenditures which accounted for most of the surplus.

Two major projects are planned for next summer. The first is replacement of the Mill Brook bridge on Schuss Pass which will cost approximately $27,000 and will be shared with the homeowners on Schuss Pass paying 40%. The second is the repair / replacement of the steel beams under the office building. The engineering for the project has just been received and we won’t know the cost until the bids are received.

Meeting was closed at 8:59 am

Eric Schoenholz

Treasurer and Chairperson of the Finance Committee