Finance Committee Meeting Minutes – July 20th, 2010
(Approved August 17th, 2010)
-Individual and Group Commitments are italicized and in bold
-Recommendations from the Committee to the Board of Directors are in bold
Meeting started at 6:20pm
Review June Meeting Minutes
Finance approves June meeting minutes.
May Financial Statements Review
Debbie did not do a summary this month, she wants to combine a May/June summary and email it out.
Balance sheet – Money market interest at Advantis and Bank of the Cascades has remained constant. KeyBank interest has dropped once again. We need to keep $200,000 as an operating reserve, which is in the Advantis money market. When funds are low in the operating account we will transfer money from money market to operating for payroll, until EFT’s and credit cards are deposited.
Deferred revenue that is now under Liabilities and Capital will be moved into Income line once Debbie has confirmed with John that live remote equipment is all purchased. The restricted funds from capital campaign (deferred revenue) will be moved into Development income line item.
Our cash reserves at the end of May this fiscal year ($446,007) is about $140,000 less than last fiscal year at the end of May ($599,009). This is due to spending the cash down, ie. deficit. Our cash deficit at the end of less fiscal year was about $107,000. We are burning less cash this fiscal year than what we budgeted. We have $422,029 in cash, but $200,000 is emergency operating reserve.
Income Statement – Membership is still over budget, right now it is $1,200 over budget. Unsolicited income is way over budget (+$18,000) due in large part to the Willamette Week GiveGuide $11,875. Direct Mail income will increase in July, Andrew has sent out a summer letter.
Kurt had a question about the history of Development revenue. Debbie explains that we budgeted $50,000 as income because we looked at how much Sun raised at half-time on the capital campaign (about $25,000).
Underwriting is under budget but virtually the same income as this time last fiscal year. Summer months tend to see more active underwriting.
Our total revenues are $33,000 less than budgetd.
Expense Statement – Under Salaries, it is $22,000 over last year because Underwriting commissions have been added to this line item, it used to be reported as contra-income in the income statement.
Newswire service continues to be way under budget, almost $6,300. We did not have to get the satellite feed, the internet service works. Debbie spoke with Jenka before she left and was assured that we will be able to budget for much less next year.
Bankcard fees remain to over budget. Finance department still actively working on our options for this.
Auxiliary Budget – Debbie says there won’t be much more spent in Aux. Debbie needs to check in with John about spending on the server, there’s still about $4,900 left to spend.
June Financial Statements Review
June and July will be reviewed together in August.
Updated FY 2011 Budget Recommendations to Board Discussion
Debbie hands out FY 2011 Staff Budget worksheet. This budget will be staff driven, not management driven so they will need to be much more involved on the fine details.
Debbie will have a working copy of worksheet for staff and finance. She will create budget proposal highlights for board to review.
Andrew is still working on membership revenue budget for FY11. Sun’s preliminary Development budget is $25,000, Events at $20,000. Question on where to put income from tiered giving program, development or membership? Finance will revisit income reporting of tiered giving in the next few months.
Debbie worked with Justin on FY 11 underwriting budget of $55,000. When we get to the point of web advertising, the line item of “program guide ads” will be changed to “program guide/web advertising”. Staff was in consensus that $55,000 for underwriting is good.
Health benefits will be budgeted for an increase of 15% to $60,590.
Board will need to look at what may need to be budgeted for Professional Services.
Operating Income budget : Preliminary $687,400 (decrease of $38,650 from FY10)
Operating Expense budget: Preliminary $689,449 (decrease of $46,150 from FY 10)
Staff needs to discuss a recommendation to the Board about Mel, Zale and Erin’s temporary hours, and whether or not to fund those hours in FY11. Staff has not made a decision about funding a station manager position. Debbie and Sun will get clarification on staff recommendations about budgeting for management.
Finance committee requests the staff make a recommendation about how they want to budget for management duties. Finance recommends keeping money in the budget for a management position, whether or not it is for an individual position or dispersed amongst multiple staff (such as Mel, Zale and Erin Y.)
Debit/Credit Card Provider Comparison Update
Paula is still waiting for information from Albina Bank, wants to get their rates on ACH transactions.
Tabled full discussion until August.
June Action Items/Commitments Update
Further Update re: Pacifica Project (tabled until August meeting)
Meeting Ended at 8:45pm
Next Finance Committee Meeting is August 17th, 6pm at KBOO