Public Page
2023-02-10 Meeting notes
- Paul Barry
Public Page
CIECA 500 Westover Dr #11617; Sanford, NC 27330
Date
Feb 10, 2023
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
Antitrust / Minutes Approval
Financials Update
2021 Financial Review
Surplus Optimization Strategy
Meeting Minutes
Paul shared the antitrust and reviewed the minutes of the January meeting.
The accountants are finalizing the January results. They should be available shortly. Anticipate no surprises.
The 2021 Financial Review is nearly complete. The accounting firm should have a final report within the next week. It will be shared with the committee upon receipt.
Surplus Optimization Strategy
Paul presented a powerpoint that lays out an analysis of our financial needs and makes recommendations for moving forward with a plan to reduce our checking and savings account balances and invest more in CDs over the next 6 months.
The presentation has been shared with the full committee and Paul is seeking input.
Questions from the group:
If we are earning a profit, does it impact our status as a non-profit? No, as long as no individual or company receives financial benefit such as dividends, intererst payment, etc. and the monies are used exclusively for the operations of the organization, then it is not an issue.
How much money does CIECA need? CIECA has a long-term strategy to develop a surplus equal to two years' operating expense. We are currently half-way to that goal.
What is the penalty for early withdrawal of a CD: Bank of America can charge up to 6 months' worth of interest for early withdrawal. On a $25,000 7-month CD that would be approximately $400.
The group agreed that we should move forward with the plan to invest surplus in CD’s and try to maintain balances in the Checking and Savings accounts at a level below the FDIC limit of $250,000 per account.
Paul will seek input from Jeff Dietrich as an accountant on any issues we should consider.
The committee can amend the plan as time permits and new information comes to light.
Action items
Decisions
- Move forward with the plan to invest in CD’s.
Participants
@Paul Barry @Mike Marlowe @Brady Bonner @Greg Best
Participants in the meetings are noted for your information. If you have questions on the committee’s activities, please contact a recent attendee.