2009-05-27 Finance Committee Report

The NFC met on 5/19/09. Motions passed at the meeting are pasted below
(thanks to our secretary R. Paul Martin).

The iCFO provided us with a comprehensive cash flow forecast for the
rest of the FY for the entire foundation, prepared by national office
staff. (This document is attached.) We were very pleased with the
quality and clarity of this document - each unit is a separate tab in an
excel sheet; all tabs are linked to the NO and Consolidated tab, so it
can easily be revised as new information becomes available.

The cash flow forecast shows $773,000 in unrestricted cash at the end of
the FY for the entire foundation. This is a very low number given that
the foundation as a whole spends about $1,200,000 a month.

For comparison, NFC member Susan Young assembled EOY unrestricted cash
info from the last two years:

$2.1 million October 1, 2007
$1.4 million October 1, 2008
$500,000 - $770,000 October projected for October 1, 2009

NFC reviewed the cash flow forecast and found it overly optimistic by
$150,000-$250,000. Another issue is that WPFW had not provided a cash
flow to NO in time for inclusion, so the WPFW tab is not complete.

The iCFO said she would provide us with a revised version after review
by the national finance office.

Our conclusion is that there is very real chance of serious cash
shortfalls in the upcoming few months. This is a serious situation. As a
consequence of our review of this document, we passed the first
resolution (below):

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(From NFC secretary R. Paul Martin):

These are the motions as I have them that were passed at the May 19,
2009, NFC meeting, not counting procedural motions, etc.

Motion: (Susan Young) "The National Finance Committee has in hand
information that lets us know that a potential cash shortfall is
imminent and that the Cash Management working group should develop
criteria for, and terms of, a loan application." (passed without objection)

Motion: (Jamie Ross) "The National Finance Committee believes cancelling
the election may create liability. The National Finance Committee
requests detailed spending plans to further understand the financial
impact of the upcoming LSB election. The National Finance Committee
urges the National Elections Supervisor to come back with plans that
would be cost effective and below the expenses of the last election,
including a scenario that minimizes all discretionary spending." (passed
without objection)

Motion: (Brian Edwards-Tiekert) "That the existing budget timetable be
communicated to all General Managers and Business Managers by by the
CFO." (passed without objection)