2022-01-14 Meeting notes

Public Page

Date

Jan 14, 2022

ANTITRUST STATEMENT

As participants in this meeting, we need to be mindful of the constraints of antitrust laws. There shall be no discussions of agreements or concerted actions that may restrain competition. This prohibition includes the exchange of information concerning individual prices, rates, coverages, market practices, claims settlement practices, or any other competitive aspect of an individual company’s operation. Each participant is obligated to speak up immediately for the purpose of preventing any discussion falling outside these bounds.

Agenda

Meeting Minutes

Financial Results: Paul shared the 2021 preliminary financial statement with emphasis on the revenue shortfall in December.
Billing System Impacts: Paul shared a presentation / analysis of why the revenue was less than expected.
- In October we implemented a new billing system. Overall the new system is far superior to the old system, but it does lack the ability to generate an invoice in advance of renewal date. This is a significant difference from the old system where invoices were generated up to 90 days in advance of the renewal.
- We did anticipate this change would have some impact to revenue recognition, but the impact was more significant than expected.
- Long term it is not a concern in terms of cash flow. We audited the subscriptions to ensure that no subscriptions were lost or overlooked during the transition, so eventually every company will be invoiced appropriately, there will just be a lag between how we did it before and how we do it now.
- The big issue is that larger companies tend to take longer to pay invoices and a majority of our large members renew between December 1 and January 1, so taking a snapshot on 12/31/2021 is in the middle of the lag time from the old billing method to the new one.
- We may consider sending Estimated Invoices to larger companies (Tier 8 and above) 90 days in advance of renewal so they can begin the Accounts Payable process sooner. This is less of an issue with smaller companies, many of whom pay by credit card.
  - Paul will do an analysis on this approach and share it with the Finance Committee in the future.
Budget Impacts: Paul will do an analysis of revenue impacts compared to the approved budget and if there is an impact to the budget, Paul will present recommended changes to the Board for approval.
Financial Review: The accounting firm had no significant findings in their financial review. We are awaiting a final report.
Banking Transition: The banking transition is complete. Paul will follow-up with HBT to ensure credit card accounts are closed.

Action items

Paul to review budget to see if impacted by new billing system model

Paul to complete analysis of invoicing in advance with the use of Estimated Invoices.

Decisions

Participants

@Paul Barry Jeff Dietrich @Ashley.Denison @Greg Best

Excused

@Kim DeVallance Caron @Phil Martinez