Public Page
2023-03-17 Meeting notes
Public Page
CIECA 500 Westover Dr #11617; Sanford, NC 27330
Date
Mar 17, 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
Insurance Review
Meeting Minutes
Minutes for the previous meeting were reviewed and seconded.
Financials: Paul Barry provided an update on the February 2023 results. No concerns. Financials are in line with expectations and budget.
2021 Financial Review: The committee discussed the findings of the 2021 Financial Review performed by VonLehman and associates as well as the response written by Paul Barry.
The findings were reviewed and the committee agreed that the response explained the findings.
A motion to approve the report and response was approved.
The 2021 Financial Review is complete.
Paul Barry will work with the auditors to complete the report in a more timely manner in the future.
Surplus Optimization Strategy: The committee discussed the presentation and recommendations presented by Paul Barry at the February meeting.
Jeff Dietrich (Car-part.com) reviewed the presentation and had no concerns with the approach. He did clarify that the FDIC limit does not apply to each individual account but to all the deposits of the corporation at a single bank.
Even though the FDIC limit does not apply on a per account basis, the fundamental analysis and conclusions are still valid.
The committee discussed topics relating to:
Has CIECA ever needed to dip into the Surplus? (The answer is no, not since the organization grew to a size where it is self sustaining.)
How has the surplus grown? (Primarily through growth of membership).
Our target Surplus is 2x annual revenue. (2 x $547,000 = $1,094,000)
Current Surplus is $614,121 or roughly 60% of target.
The committee approved a motion to implement the Surplus Investment Strategegy proposed by Paul Barry
Paul will work with Bank America over the next six months to invest $200,000 in 7 month CD’s so that when complete a CD will be renewing each month.
Insurance Review: Paul Barry is working with our insurance brokerage to assess CIECA’s insurance needs to ensure we are adequately protected in the event of a loss.
Directors & Officers Policy: We currently have a D&O policy which protects directors and officers for decisions made or not made that could have financial impact on the members or other entities.
General Liability: CIECA does not have a GL policy and this is an area to investigate. CIECA hosts multiple Board meetings and an annual conference. If someone was injured while attending a conference or meeting, they could conceivably bring action against CIECA. Without a GL policy we would not have coverage for attorney's fees or damages. Paul will follow up with agent to assess this need.
Action items
Decisions
- 2021 Financial Review Report and Response was approved, and the matter closed.
- Surplus Optimization Strategy and Investment Plan were approved.
Participants
@Paul Barry @Brady Bonner @Greg Best @Mike Marlowe
Participants in the meetings are noted for your information. If you have questions on the committee’s activities, please contact a recent attendee.