[Ofa_boardplus] August 10, 2017 minutes

[Jim Ryan]

Lecture mode *on*

There's a little bit of incorrect accounting terminology in this
discussion. I'd like to correct it because if you accept what I'm going to
say I think the discussion will become more productive. BTW, I thanked
Susan privately because I thought her note to the Board did exactly that,
took us all to a higher level.

What's happening is the terms "balance sheet", "income statement" and "cash
flow statement" are being mixed up and used incorrectly. What we have from
Bill is an attempt to estimate revenues and expenditures, the elements of
an income statement for 2018. The $48,362 number Bill shows for 2017 is the
amount income is expected to exceed expenses. If correct it will increase
our cash as shown in the balance sheet.

It's not a "reserve" in any sense of the word. You're right, Jason, we
can't do anything with that number. The correct way to view this is to know
the cash we have as shown on the balance sheet, which I haven't seen for a
long time. The last info I have on this is from a Treasurer's Report from
Bill on 7/19/17, which said we had a cash balance of $419,894 as of 6/30/17.

So, the questions to be answered should be:
- Will income exceed expenses in 2018 or the other way around?

- What is our cash position and how much do we need to hold in reserve,
reflecting our "fiduciary responsibility"

- If the decision is made to take on some additional expenses, requiring us
to draw down our cash balance, what are those expenses, how are they
determined, things like that

Lecture mode *off*
.
.
.
Take this as a threat or a promise, but I can drone on like for this for
days, and no wants to see that ;^))

Jim

On Thu, Aug 17, 2017 at 11:00 AM, Jason Gunthorpe <
jgunthorpe at obsidianresearch.com> wrote:

> On Wed, Aug 16, 2017 at 10:13:58PM +0000, Coulter, Susan K wrote:
>
> > My bad on my previous comment (copied below), the 2018 draft budget
> > does show $48,362 as possible surplus in 2017.  Perhaps modify the
> > minutes to say "The last report on the 2017 budget shows a possible
> > $48,362 surplus".
>
> The surprlus/deficit at each year is one number, but I notice the
> budget does not carry the last year surplus into Income, so my
> question would be what is the total accumulated reserve?
>
> It would be easier to understand the OFA's finances if a monthly
> estimated cash flow format was provided. It is hard to esimate how
> much long term cash reserve is needed without also understanding how
> the inflows/outflows are scheduled..
>
> Jason
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