[DeTomaso] NPC- Reno Fernley Raceway

[Jeff Detrich]

I'd like to add that I may have mis-represented something in the previous
posting about the dues reduction. In it I said that " the rest of the Board
has tabled any consideration of this issue."  It was not "the rest of the
Board," a few other Board members like Les Gray supported the motion. I
apologize for this.

Jeff

On Sat, May 2, 2015 at 10:03 AM, Jeff Detrich <jjdetrich at gmail.com> wrote:

> 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
>
>
>
>
>
>
>
>
>
>>
-------------- next part --------------
   I'd like to add that I may have mis-represented something in the
   previous posting about the dues reduction. In it I said that "A the
   rest of the Board has tabled any consideration of this issue." A It was
   not "the rest of the Board," a few other Board members like Les Gray
   supported the motion. I apologize for this.
   Jeff

   On Sat, May 2, 2015 at 10:03 AM, Jeff Detrich <[1]jjdetrich at gmail.com>
   wrote:

   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

References

   1. mailto:jjdetrich at gmail.com