MINUTES Finance Committee Mad River Glen Cooperative Wednesday, December 12, 2018

 

Attendance: Meg Hourihan, Matt Lillard, Eric Palola, Meg Schultz, Andrew Snow, John Stetson, John Tobin, Matthew Milan, Tyler B. Kimberley, Senior Accountant

Mudgett, Jennett & Krogh-Wisner, P.C

 

The meeting was brought to order at 8:00 AM by Meg Hourihan, MRG Treasurer and Finance Committee Chair.

 

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Approved November minutes.

 

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Audit Review:

 

• Meg Hourihan walked the committee through the auditor’s report.

 

• John Stetson asked a question about the Architectural agreement and the extent of the commitment which is currently $69,889, not $186,050 as listed. Tyler asked if the committee wanted to change the language. John Stetson suggested we have Tyler come up with new language to account for this in the audit. Tyler suggested that the 69K amount come out of the commitments footnote to become a separate footnote. Matt Lillard asked if to follow that we should list this as a separate project cost. Tyler suggested a solution for updating the audit report to care for this.

 

• John Tobin asked if we still had an outstanding commitment out there for fundraising expenses. Matt Lillard confirmed we are fully paid up and have no outstanding commitments. Tyler suggested we keep the note in the document as it is comparative. Matt L suggested language for Tyler to use to update the note.

 

• John Tobin, asked a question about non-grant income amounts in the draft audit. Matt Lillard and Andrew Snow clarified.

 

• John Tobin asked what our future tax liability was regarding non-grant income from SMF versus other sources. Tyler clarified what elements were excluded. vTyler said that the details are in the draft tax return that Matt Lillard and Sharon have seen. Matt Lillard will share the document with the Finance Committee. Meg asked Tyler for further clarification around how grant requests are handled. Tyler clarified the process.

 

• John Tobin asked for clarification around a date in the audit and language around approvals of the audit. Tyler said the date will be updated in all final versions of the document.

 

• Andrew said any variance between the reports and the last years financial statements will be addressed in the final document.

 

• Meg asked if there were any comments on the letter from Steve Kantor. There were none.

 

• Meg asked if there were any comments for the IC draft letter. There were none.

 

• John Stetson commented that the limited amount of journal entries suggested that the quality of the work that Andrew, Matt and Sharon were doing was great.

 

• Meg proposed “that the committee accept the document as edited during our discussion be approved”. John Tobin seconded. The document was approved.

 

• Eric P asked which of these documents should be shared with the board, Meg confirmed that the draft documents had been shared with the board, and any updated documents would be shared as FYI.

 

• Meg thanked the committee for their time reviewing the documents

 

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Nov 2018 Financial Report

 

• Meg asked for any comments or questions.

 

• Matt Lillard highlighted that we are in a far better position right now that we were at the same time last year, The LOC is paid off and we are better in terms of cash on hand.

 

• Matt has indicated that he wants move some of this cash on hand out of operating capital to put this money into a “Rainy Day account” which we can dip into first in the summer before the LOC. – he is looking to move about 130K into this account. It will be straightforward to move the money back from this savings account. He is looking to move the money after Mad Card Deadline and will show this in cashflow as “Mountain Rainy Day Fund”.

 

November P&L

 

• Matt L walked the committee through November P&L. NOI was better than last year by 6K, Matt is comfortable with where we are expense-wise and revenue-wise.

 

Year to date

 

• Matt Lillard and Andrew Snow are trying to determine how profitable it was to open early. We were open for one Saturday and a number of mid-week days. We are doing better than last year and better than budget. Matt expects this to become clearer after Christmas. Their analysis will focus on variable costs, especially labor cost from opening earlier. Matt expects this period to break even or slightly better, with a lift in Mad Cards, Christmas week lesson bookings, etc.

 

 

Cash Flow

 

• Matt L indicated we are looking good for cashflow. He is forecasting a 200K LOC draw, which is a drop from the last estimate, which is approximately 125K less than last year.

 

• Meg asked how Rainy Day Fund would be handled in cashflow. Matt said that currently that money is in starting and ending cash balance. Once moved it will be put into its own line, coming out in December, expected to be coming back in May.

 

• John Tobin asked how costs for PB (Patrol Building) BB, (Basebox) and Birdland Lift would be handled. Matt indicated they would show up on the books when those projects started.

 

Share Redemptions

 

• Matt Lillard said there is 65K in the share redemption account, and 32K in share redemption requests this year which will leave 33K left over. He recommended that we put into rainy day money as part of the 130K and suggested that in the future we could move share redemption out of operating capital and into rainy day fund.

 

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Treasurer Role Change

 

• Meg Hourihan announced that she is stepping down. Matthew Milan has agreed to step into the treasure role. This will be announced and submitted for approval at the Dec 15 Board of Trustees meeting.

 

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Meg Hourihan made a motion to adjourn – Eric Palola seconded.

 

The meeting adjourned at 8:55 AM.

 

Next meeting, Wednesday, January 16th at 8:00 am

 

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Respectfully submitted,

 

Matthew Milan, member Finance Committee

 

And

 

Meg Hourihan, Chair Finance Committee and Treasurer