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Finance Committee Notes: August 4, 2004 Finance
Committee of the GPUS In preparation for David's visit (Aug. 11th) Emily drafted a proposed notebook and a workplan schedule. There is a need to run comprehensive diagnostics for reports. User testing is needed in advance of David's arrival. Doug and Jeff suggested a conference call during David's visit; Emily will plan for it. 2. Income Reports. Doug, Jeff & Emily Jeff was sent a list of income categories; he will work on them later in August. 3. Committee Mission, Policies, and Procedures. Bill Bill reported by first pointing to Jeff Turner's suggestions in his 7/23/04 6:15 AM email. A relationship to the Fiscal Policy. One change already agreed to is the need for members to belong to state parties that are part of GPUS. We worked through Jeff's additional suggestions. Regarding institutionalizing the budget and reporting processes, it was agreed they should be in writing, but would have to be developed later. Bill will take Jeff's structural suggestion under advisement, and draft language for details like appointing roles in meetings. The idea of formal subcommittees was set aside because of the small size of the committee at present. Another draft of the document will be done by Bill, hopefully coordinating with Jake's drafting of fiscal policy. 4. Fiscal Policy Jeff favored putting committee membership rules here, rather than in Policies and Procedures. Jeff will try really hard to review the policy before the next meeting. 5. Budget Amendment / Black Caucus Co-chairs of Black Caucus are working on an amended budget; promised to have it to us by the 18th. Jeff turner suggested and others agreed that we are not going to give them $ up front it total, but piecemeal as needed. Therefore they need to be informed of the requirement to schedule those cash needs over time (like in monthly budgeting of expenditures [and income]). 6. Cash Flow Jo believes GPUS is slowly slipping into financial crisis. Excluding convention income, sustainer money has averaged about $9500 per month over the last 6 months. Some sustainers canceled after convention. Typically with other income we receive about $10,500 per month. We already pay over $1000 per month for Web services & programming. Our absolute minimum expenditures are about $15,000 per month; with other expenses $25,000. Reserve is about $30,000. Events are not working right now. Fundraising mailings will go out this and next month, plus follow up calls. Doug made the observation the income really has averaged more like 25,000/mo excluding convention income which is a much different view that the numbers above attributed to Jo's view. Jo suggests Finance Committee needs to clearly inform the Steering Committee and CC of what our financial situation really is. Bill suggested we write a brief, firm report to the discussion and proposal lists so that the entire national committee is informed of the situation. Jeff suggested we need to invest in fundraising, even if it means using the reserves. Jo, Jake and Bill will write a report for the Steering Committee and CC. 7. CCC - Campaign Resource Program - Doug Tom Sevigny told Jake CCC is figuring on giving $10,000 for candidates around the country. For Arizona, waiting to hear on PAC, but we can give them $350 without creating a PAC. 8. Bundling state sharing of lists with national list. This came about from NY request. Marc believes new policy to require reciprocation is a good idea. Emily already sent the list to NY. Fundraising Committee policy is that we don't have a reciprocal exchange policy. States have resisted trading lists in the past. Marc volunteered to draft the policy. 9. Democracy in Action (fundraising) - Kara and Marc This proposal has been approved by Fundraising Committee. Kara requested items (sample invoices and reports) from April re contract; hopefully will get tomorrow. Democracy in Action is the company that can supply fundraising tools for our Web site. Question for this committee is how invoicing will work. $3500 up front fee plus $200 monthly and per transaction (3% + $.40) fees. Fees will be deducted from site revenue. Annual budget probably $5000 to $6000 per year. There is a question about how to do FEC reporting of costs. Jeff said that we have to ask the question and expect that we will get reports that tie the bank deposit amounts to the different income categories that we require in our accounting system. Jake and Doug through Emily need to know into which budgetary categories every penny of cash receipts belongs. We have the same problem with out current web service. I offered to analyze all of our current credit card service (present and proposed) along with our web techies to help get the most economical merchant credit card service that will meet our income cost accounting needs. This is not optional-we have to know exactly why we get our money, so that we can plan without having the budgeting process reduced to a flaky inaccurate exercise in wild guessing based upon inaccurate historical information. I really hope the finance committee will take a strong stand and require that we do a better job of demanding accurate information and professional processes to guarantee that accuracy. Jake has posted the proposal and contract to our list. Fees include Web page creation. Jeff will review contract to see if credit card charges are fair. Jo believes this may cost us more than it generates this year. 10. Fundraising projects, remainder of 2004. Kara. These will be ready by Monday, but she needs to know (from Emily or Doug) what we are getting for online contributions (not convention) with breakdown. Merchandise was not part of fundraising plan; wants better information from Doug. Has looked at new reports, may have some questions about them. 11. Next meeting is Wednesday, August 18th, 7:00 to 8:30 PM EST
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