[DeTomaso] NPC- Reno Fernley Raceway

[Jeff Detrich]

Okay, time to clear this up since no one else on the Board wants to step up
and talk about it. For some reason, they consider it to be privileged and
confidential information even though it is published as part of the yearly
financials. Yes, POCA does have a large amount of cash. Over $100,000. The
actual balance varies month to month based on dues received, expenses for
each month, and so forth. Right now, the fund balance is much more than
$100,000 because it includes Fun Rally registration fees that will be used
to pay for the Fun Rally expenses right after the Fun Rally ends.

So, realistically, how much excess money does the club actually have? For
the sake of argument, let's just say we have $100,000. Prudent financial
management would have us set a reserve for unanticipated cash needs. There
are things other than our recurring expenses that would typically be
considered when setting a reserve, primarily for uninsured risks,
shortfalls in revenue, and unanticipated expenses.  Currently, club
expenses are running about $40-45,000 a year. So it would not be
unreasonable to set that as the reserve. That would leave excess cash of
about $55,000.

Some may ask, why do we have so much money? That is relatively easy to
explain. For several years we were accruing expenses for the POCA Profiles
Magazine and dues were set accordingly. Unfortunately, we didn't publish as
many as we planned. As a result, the cash balance grew. The good news is
that our new Profiles Editor, Mike Haney, seems to be on target to publish
more regularly, with the one caveat that all of us continue to support his
efforts by providing newsworthy articles for him to publish.

What should the Board do with this excess money? First of all, let me state
that the money belongs to the members. Both myself and Bob Reid, the
Treasurer, have repeatedly brought this up and that we should consider
reducing the dues. To date, the rest of the Board has tabled any
consideration of this issue but I expect that it will be brought up again
after the Fun Rally. The good news is that the club is growing which
mitigates some of the issues involved with setting the dues. As a result,
even with dues at $60 per year, the club would essentially break even.

I hope this clears things up. We work for you. See you at the Fun Rally.

Jeff Detrich
Secretary, POCA









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   Okay, time to clear this up since no one else on the Board wants to
   step up and talk about it. For some reason, they consider it to be
   privileged and confidential information even though it is published as
   part of the yearly financials. Yes, POCA does have a large amount of
   cash. Over $100,000. The actual balance varies month to month based on
   dues received, expenses for each month, and so forth. Right now, the
   fund balance is much more than $100,000 because it includes Fun Rally
   registration fees that will be used to pay for the Fun Rally expenses
   right after the Fun Rally ends.A
   So, realistically, how much excess money does the club actually have?
   For the sake of argument, let's just say we have $100,000. Prudent
   financial management would have us set a reserve for unanticipated cash
   needs. There are things other than our recurring expenses that would
   typically be considered when setting a reserve, primarily for uninsured
   risks, shortfalls in revenue, and unanticipated expenses.A  Currently,
   club expenses are running about $40-45,000 a year. So it would not be
   unreasonable to set that as the reserve.A That would leave excess cash
   of about $55,000. A
   Some may ask, why do we have so much money? That is relatively easy to
   explain. For several years we were accruing expenses for the POCA
   Profiles Magazine and dues were set accordingly. Unfortunately, we
   didn't publish as many as we planned. As a result, the cash balance
   grew. The good news is that our new Profiles Editor, Mike Haney, seems
   to be on target to publish more regularly, with the one caveat that all
   of us continue to support his efforts by providing newsworthy articles
   for him to publish.
   What should the Board do with this excess money? First of all, let me
   state that the money belongs to the members. Both myself and Bob Reid,
   the Treasurer, have repeatedly brought this up and that we should
   consider reducing the dues. To date, the rest of the Board has tabled
   any consideration of this issue but I expect that it will be brought up
   again after the Fun Rally. The good news is that the club is growing
   which mitigates some of the issues involved with setting the dues. As a
   result, even with dues at $60 per year, the club would essentially
   break even.A
   I hope this clears things up. We work for you. See you at the Fun
   Rally.
   Jeff Detrich
   Secretary, POCA