Finance Committee Meeting Minutes

 February 2, 2006

ACPM

  

Present:            Halley Faust, Arthur Frank, Don Vickery

Staff:                Mike Barry, Kelly Andrewlevich

 

  1. FY 2006 budget revision

Budget as proposed was approved for submission to the Board, with the changes as follows:  (a) indirect costs will be shown for each major line item; (b) 12-month budget will be removed and original 2006 budget will be added; (c) need to add additional rent expense for taxes (per #7 below).

  1. Methods for handling indirect expenses

Different methods for accounting for indirect expenses were discussed.  Currently the indirect costs are approximately 25% of total expenses.  The question is how to display these costs while reflecting the true costs of programs.  Auditors have been contacted for suggestions.  We’ll await their suggestions, then Kelly can look at them and try them to see how it might make a difference.  We’ll take it up again at next meeting.

  1. Update on monthly budgeting

Template shown and positive comments from the Committee.  Still some work to complete this for 2006 fully by Kelly and Mike.

  1. 2007 budget development process - role for Board

Reviewed process.  Suggested the committees be engaged as step #2, with a budget put together after executive committee reviews committee work plans.

  1. Investment position and process

Based on November discussion, just need a summary page as proposed by Al for BOR meeting.

  1. Membership termination policy

Membership committee worked through the language on the finance committee’s proposal.  Membership committee approved the language and has been referred to Constitution and By-laws committee, which will recommend to the BOR.

  1. Update on real estate tax issue

Real estate tax levy status:  asked us to pay fair share of taxes:  $46,000 for ACPM.  Our lawyer is involved.  Co-owners have filed a petition on behalf of the three tenants (including ACPM) to get the assessment waived – and trying to re-coup monies from the District.  Mike will contact lawyer to determine potential benefits and liabilities if we were to pay or refuse to pay, to report to the Executive Committee meeting this month.

  1. Employee Manual review

Finance Committee will provide comments initially within the next couple of weeks, and then decide to send to attorney for review.