FINANCE & LEGAL COMMITTEE
Monday, July 12, 2010
“Responsible for the annual operating and capital budgets, determination of fees and assessments, definition of member and guest privileges, and all related legal, taxes, insurance, zoning, and organizational matters affecting the Association.”
PRESENT: Jere Kovach-Chairman & Member Board of Directors
Kirk Sessions- GM-Ex Officio
ALSO IN ATTENDANCE: Kathy Schooner, staff bookkeeper.
The meeting was called to order @ 3:00 P. M.
The minutes of the June 21 meeting were approved. The outstanding unpaid assessments for 2009 and prior years have been reduced from 93 to 45. Of the 45 we have received a court judgment on 22 and the remaining 23 will be going to court in the near future. The 2010 unpaid assessments, as of July 12, have declined to 150.
Kathy Schooner was invited to present information concerning the balance sheet versus the bank statement on the CD’s. This demonstrated that the balance sheet had been reconciled with the bank statements concerning the CD’s. Kathy did a fine job of explaining the process she is going through to reconcile all the bank accounts. This committee will periodically be reviewing the balance sheet versus the bank statements.
The BOD has decided to reserve all funds received from the sale of Capital Assets for future Capital expenditure. As of May 31 there are two CDs valued at$177,765.79 and $207,078.32 in the Bank of Jackson Hole at Alpine. There is another valued at $130,984.97 at 1st Bank in Alpine. In the very near future there will be 2 more valued at $210,000 each at the Bank of Star Valley. These funds came from the sale of the water tank in Green Canyon to the Town of Star Valley Ranch. The town has another payment of $144,000 due July 15 for the maintenance building. It is anticipated that these funds will also be reserved for future Capital expenditure. With these additions, the CDs reserved for future Capital expenditure will total $1,079,829.08.
In light of the serious deterioration of the Silo, Barn, Office Building etc., this committee is certain there will be considerable documented need for Capital funding. This committee therefore, thanks the BOD for their actions in dedicating funds received from the sale of Capital assets for future capital expenditures.
Mr. Kovach informed the Committee of the statements made by our attorney at the BOD workshop, held on July 6, wherein he expressed his belief that we should report the matter of the $60,724.41 unexplained discrepancy to the Lincoln Co. Sheriff. That report has now been made and an investigating officer from the Sheriff’s office has discussed the matter with Mr. Kocach and our Auditors.
Mr. Sessions handed out copies of 1) “Profit & Loss January through May 2010” dated 7/12/10 and 2) “Balance Sheet-As of May 31, 2010” dated 7/12/10”. Many questions were asked about these reports and it was agreed that further refinement is necessary if clarity is to be obtained.
Mr. Root had several questions concerning apparent discrepancies between the final balance sheet for 2009 and the Auditor’s report. Mr. Sessions explained that all 2009 financial reporting was “frozen” while the audit was being conducted. Once the audit was completed our staff has been implementing the audit recommendations.
Mr. Root had several observations concerning the lack of detail in the Profit and Loss statement. It was agreed that future P & L statements will include all income and expenditures for all budgeted items along with the current year budget. It was further agreed that a condensed version of the P & L would be sufficient for distribution to the general membership. All members however, could obtain a copy of the detailed, item by item, version of the P & L.
Inventory procedures for the Pro Shop and Bar were discussed. Mr. Sessions reviewed the procedures in place and it was agreed that these will produce accurate inventories and “cost of goods sold” for the year. Mr. Vandel expressed his opinion that this committee is devoting an inordinate amount of time to the management of the Bar and Pro Shop and suggested that there be small “oversight “committees formed to review both of these operations on a continuing basis. Mr. Kovach stated that the BOD has assigned the responsibility for the bar to him and he, along with the GM and Bar Manager, is making the reviews. He assumes that Gary Braun, along with the GM and the Golf Pro, is doing the same for the Pro Shop. It was also agreed that this committee needs to be informed of the results of these reviews.
Mr. Vandel asked if this committee was going to be responsible for developing the “Capital Improvement Program”. Mr. Kovach gave the opinion that we would and the rest of the committee agreed. Mr. Sessions informed the committee that the State of Wyoming has approved a “Main Street” grant for Architectural services to study the Barn, Silo and Office. He, along with Directors Cheshire and Tooleson will be meeting with the designated architect on Tues. eve. for a walk through of the facilities. This “study” will be in addition to the structural engineering study conducted last year and the previous study done a few years ago. Director Daulton presented an “action Plan” for the development of a “Master Plan” at the BOD workshop on July 6. There is scheduled a three day “Community Assessment” starting on August 23, 2010. This will be similar to the one conducted about four years ago, after the formation of the town. This committee agrees that all these activities are very important to our moving forward with desired and needed improvements to our facilities but it is now time to begin the process of deciding upon priorities and improvement schedules. Our next meeting will be devoted exclusively to the development of a “Capital Improvement Program”.
Mr. Vandel stated that no work has, to date, has been undertaken to develop the 2011 budget. He was reminded that Mr. Sessions will develop the budget, in its entirety, prior to presenting it to the committee for our review and eventual submission to the BOD.
The meeting was adjourned at 5:00. The next meeting will be Mon. July 19 at 3:00 in the Library. Future meetings are still scheduled for the first and third Mondays of every month during the “season”.