Finance Committee Meeting Minutes
Thursday, March 28, 12:00 p.m. central time.
Committee Members Present: Vicki Basman, Paul Caputo, Duane Fast, Theresa Coble
(Chair)
NAI Staff Present: Beth Bartholomew
Committee Members Absent: Brenda Lackey, Dave Smaldone, Travis Williams
As the meeting began, Theresa recapped her discussion on February 15, 2013, with
Paul and Beth regarding the 2012 end of the year financial reports. There were
some bright spots in NAI’s 2012 financial performance. Also, Paul and Beth had
elaborated on several areas where some unexpected gains, as well as some one-time
costs, had emerged.
Vicki Basman, a member of the NAI Audit Committee, participated in a Finance
Committee meeting for the first time. Since the review of NAI financial records is a
component of the Finance Committee’s charge, no Audit Committee meetings were
held in 2012. I had inadvertently left Vicki out of the quarterly review of financial
documents and reports—sorry, Vicki!
Vicki’s first request was to review the Finance Committee’s charge. Theresa
summarized the committee’s charge as follows: “The purpose and scope of the
Finance Committee relates to investment policy and oversight, recommending new
revenue-generating activities, ensuring that NAI programs maintain a positive
cost/benefit ratio, and making recommendations to the board on specific
subjects/tasks as directed by the President. Specifically, the Finance Committee
should ‘review program activities of the national office and organization sub-units
to ensure positive cost/benefit ratio as directed by the President.’”
Theresa explained that during spring 2012 the committee had established the “NAI
Financial Information Dropbox” folder at www.dropbox.com. The committee
discussed the type of financial information and reports that have been made
available via dropbox. Paul and Beth indicated a willingness to update dropbox
records and to post NAI financial information and reports to dropbox as they
become available. Vicki highlighted the usefulness of having a “one-stop shop” for
committee members, noting the value of dropbox as a readily accessible financial
archive.
Vicki thanked Paul for the one-page budget summary that he prepares each month
in conjunction with his staff report. She finds it helpful to see year-to-date revenue
and expenditures alongside projected numbers for the current fiscal year as well as
financial information spanning a three year time period.
Theresa indicated that Travis Williams frequently urged board members to review
financial information in QuickBooks report format. She wondered whether it would
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be helpful to provide board training related to reading and understanding
QuickBook reports.
The committee discussed and/or reviewed several financial documents included in
the 2012, 4th quarter dropbox folder including the 2012 budget, balance sheet and
profit and loss statement. The committee discussed at some length certification
revenue for 2012. Beth clarified the QuickBooks structure for certification and
training fees, indicating which revenue and expenses are categorized under each 4digit code. Theresa suggested that it might be helpful if a key were developed that
defines NAI classes and sub-classes. This would facilitate board member
interpretation of specific line items in the QuickBook reports.
The committee discussed the fact that in 2012, for the first time, NAI had generated
over $8000 in income from webinars. Vicki asked Paul why training revenue had
fallen from almost $16,000 in 2011 to $0 in 2012. Paul indicated that several
training sessions had occurred, but since he was an invited speaker and his training
fees had been paid for by outside organizations, the revenue was included under
“speaking and consulting.”
Paul indicated that he will propose to the board during the April meeting that the
remaining $80,000 from the Bruce McHenry bequest be used to pay down NAI’s line
of credit (LOC) with Wells Fargo.
The meeting adjourned at 1:33 p.m. central time.
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