To: MVCAC Board of Directors

To: MVCAC Board of Directors

From: Finance Committee

Recommendation:

With the Board Workshop approaching and the need to develop a directive for the various committees in the 2016 year, it is recommended that an action item be placed on the agenda of the Board of Directors Fall meeting so that it may take action to disband the Finance Committee.

Result of Recommended Action:

The Association, having an Administrator, Executive Committee and Treasurer who work together on financial matters, will reduce bureaucracy, improve transparency of responsible person(s), and otherwise reduce duplicative work which results in lost time and even confusion between associated groups. The President will also benefit as he sets his program for the workshop describing the 2016-year.

Background:

The Finance Committee was formed as a direct result of poor management by Blanning and Baker. The Association was largely in the dark as for expenditures, rooms were being comped for other clients of B&B and our own members and vendors were often staying off site, to mention but a few complaints. All in all the Finance Committee constructed the transparency vehicle for the membership to be able to evaluate the management teams care of our resources as well as to take to their boards and easily spell out the value of the MVCAC when dues costs were of concern.

Finance Committee Duties:

2.4.2 Duties involving management of Association business affairs.

Develops with the Finance Committee and Treasurer the proposed annual budget for the Association including the amount of contractual payments (dues) of Corporate Members and the annual dues of Associate Members and presents them to the Executive Committee.

3.1.1. The Annual Budget

An annual budget proposal for the Association shall be prepared by the Executive Director, in cooperation with the Finance Committee and the Treasurer, and presented to the Board at the spring Board meeting. The annual budget proposal shall include a report on the financial position, estimated needs for expenditures and estimated income from all sources. The MVCAC annual budget shall be based on a fiscal year starting July 1 and ending on June 30.

Appendix BMosquito and Vector Control Association of CaliforniaReserve Policy Guideline

The Finance Committee will review reserve levels on an annual basis during the budget process and may recommend the Board of Directors revise the uses, fund balance targets and replenishment procedures, as necessary. Funding priority will be Operating Fund followed equally by all remaining reserves. The Board of Directors can, at its discretion, reallocate reserves between funds.

The target Operating Fund balance will be based on MVCAC’s annual budget as outlined above and will be established by the Finance Committee and approved by the Board of Directors during the annual budget deliberations.

The Finance Committee, as part of the annual budgeting process, will review the fund activity and make adjustments as necessary to target fund balances and replenishment of money sources.

Currently there is a sentiment coming from the Executive Committee that the Reserve should only cover the contracts in place. Developing language to amend Appendix B is a simple task for the Executive Director and the management team.

Dissolution Provisions:

The management team will, as it is currently charged, prepare a budget along with the Treasurer to be provided to the Executive Committee. The Committee will participate in discussion and once agreed upon the Budget will be submitted to the regions for comment.

The management team along with the Treasurer does and will continue to review and make recommendations regarding reserve levels, dues requirements, and fund replenishment, etc.

Conclusion:

The Finance Committee has achieved the task of transitioning the management team. The Treasurer is once again an active member of the Executive Committee. Financials are being considered when decisions regarding future expenditures are being made on behalf of the association. Our finances are better understood by our membership. The Finance Committee has served its purpose well and the appropriate safeguards are in place to give the membership confidence in the financials and their ability to support the future programs of the Association. The time has come to let the principals perform their duties as expected.