May 2016 Finance Committee Action Items & Report

Post date: May 05, 2016 8:14:29 PM

The AVP/USA Finance Committee met on May 3, 2016, and recommends the following items for consideration by the board.

1. Insurance Needs – We need to secure insurance for this year’s National Conference. The conference cannot go forward without it. We also should consider purchasing Directors and Officers insurance to protect board members from legal claims.

Margaret Browne obtained quotes from West Bend Insurance (see attached files); the broker is Bremmer Insurance (tied to the bank AVP/USA uses currently).

· General Liability Coverage. $410.00

· Business Auto insurance, which includes conference coverage; protects any volunteer transporting attendees during the conference. $150

· Commercial Liability Umbrella (personal and property liability for conference): $1,100.00.

· Directors and Officers Insurance: $450.00 which protects board members from claims. $1m coverage per member.

· Property off premises (no quote yet): To cover the inventory in the distribution center which is rented space.

Margaret anticipates that the costs may be a little higher for the Commercial Liability Umbrella insurance. Terry Kayser is seeking a second quote.

Action: The Committee recommends that the Board approve the pay for Conference-related insurance (General Liability Coverage, Business Auto Insurance and Commercial Liability Umbrella Insurance) out of this year’s budget at approximately $1,660. The Business Auto Insurance and Commercial Liability Umbrella insurance premiums should be considered conference expenses this year and going forward. The General Liability Insurance should be considered a general operating expense this year and going forward.

Action: The Committee also recommends the Board approve Directors and Officers Insurance and Property Off Premises Insurance for the 2016-17 FY.

2. 2016/17 FY Budget. The Finance Committee has approved the attached budget for the upcoming Fiscal Year. The Committee recommends it to the Board for consideration. If the Board approves, it will then be considered at the conference by the body, which must also approve. Treasurer Joe Ossmann is awaiting one final piece of information, and will post the budget proposal here in the next 24 hours or so.

3. Incorporation. AVP/USA was incorporated in the state of Maryland in 1992. It was not sustained in the early 2000s, so the organization unknowingly forfeited its incorporated status in 2005.

Fortunately, the organization has filed IRS 990 forms annually, and maintained our 501(c)(3) status, so we are not at risk.

Options:

1) We could reinstate with the State of Md. We would have to file 3 years of records, name our principal place of business in the state, and name an agent. Doing so would not reinstate us as of 2005; it would just restart us in 2016.

2) We could file for incorporation in the State of Minnesota, which would cost $90.00. We would list the St. Paul address as our place of business.

Action: The committee recommends the second option. We have our St. Paul address as our current place of business, and can name an agent easily. The Committee recommends we pursue this action.

Respectfully submitted,

Chad Dell, co-clerk

Finance Committee