Finance Committee Meeting Minutes: December 18, 2019

Attendance: Matthew Milan, Matt Lillard, Geordie Hall, Leigh Michl, Meg Hourihan, Brian Williams, Meg Schultz, John Stetson, Andrew Snow, Deb Steines, and John Tobin.

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

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1. Approved November 2019 minutes

2. Review of 2019 Independent Auditors Report with Auditor Tyler Kimberly
   • Governance Letter – nothing to highlight, audit completed, no issues, Tyler complimented Andrew on the audit book they received.
   • Communication on Internal Controls – outlines audit procedures and if anything of note was discovered it would be outlined in this letter. Nothing was noted
   • Financial Statements & audit report – received a modified opinion, also referred to as a clean opinion.
   • Andrew works closely with Tyler on the details within the statements as provided. The PoP campaign numbers are integrated in the statements.
   • Tax implications of the PoP campaign – any funds received go directly into the capital projects. SMF funds received for expensed items go into income but are offset by corresponding expenses, so no impact on the P&L.
   • First year in memory where the co-op showed an income for tax purposes so some of the loss carry-forward was utilized. There is over $2 million in the carry-forward.
   • There were two minor reclassifications
   • Based on FC request, terminology on stocks vs shares or certificates will be clarified
   • Motion to recommend the audit to the board from the Finance Committee was made and unanimously approved.

3. November Financial Reports and Cash Flow Review:

November 2019:

• Balance Sheet – great story, $592k cash. Moved $250k to rainy day account
• November P&L – lower than 2018 as the mountain was open for 5 days last year and none this year.
• YTD P&L – Oct was strong, tremendous season pass sales, in a good position for the rest of the year.
• PoP – the stairs are a Co-op expense not part of the campaign.
• Board approved $100k in capital due to unexpected code reviews, for guard rails on the main deck, hand rails on stairs, sprinkler additions, and a grinder for the ski shop
• Share tendering – 18 for $23,500 will be recommended to the board
• Cash Flow: not much to report, minimal change from last month

4. Review of 2019 Modeling work outputs –

• Operating is much different than it was 5 years ago because of capital investments which cannot be factored into historical data. The trend exhibits are another tool to determine how we’ve done based on historic weather patterns.
• What to look at next? Can’t change the weather
• Impact of prior years weather on next years ticket sales in contradictory, skiers only remember the end of the season.
• The modeling group needs to work on what will help Matt and his team

Next Finance Committee Meeting – Wednesday January 15th at 8 AM

9:00 am – Meeting adjourned

Submitted:

Deb Steines