LAKE CHAPALA SOCIETY
ANNUAL GENERAL MEETING
December 11 , 2008

The Annual General Meeting of the Lake Chapala Society was called to order at 1:10pm by President Nancy Creevan with a quorum in attendance.

Minutes of Previous Annual General Meeting

Minutes of the October 10, 2007 Annual General Meeting were read by Board Secretary Mary Ann Waite. 

Betty Parker indicated that the minutes were incorrect with regard to a statement made regarding the “Friends of LCS Garden”.

Mary Alice Sargent moved that the minutes of the October 10, 2007 Annual General Meeting be approved as amended; seconded by Richard Bailey.  Motion Approved

Audit Committee Report

Sherry Butler was introduced as the chairperson of the new Lake Chapala Society Audit Committee.  She provided information regarding the committee:

• The committee will be reviewing policies and procedures of the LCS.
• The committee serves the membership and there is no control by the Board.
• The committee will have full access to any records.
• Volunteers were solicited by an advertisement on the LCS website.
• Committee members are:
• Tyler Marshall:  Has been a member of LCS since coming here 3 years ago.  He worked as a lawyer for 40 years and as a committee member offers the willingness to ask stupid questions and the stubbornness to keep asking until he gets the answers.  He indicated that he will wear his volunteer badge every time he is on the grounds and invited members to come to him, or any other committee members, with questions, suggestions or comments.  He asked that these be presented in writing.
• Emile Badawy :  Is a CPA from Australia.  His last job was as CEO for a not-for-profit organization.  He volunteered to help on the committee as any not-for-profit organization needs volunteers to survive.
• Janet Rechart:  Was a volunteer in non-profit organizations.
• Mark Niederman:  Has a Masters in Business and in Information Technology
• Sherry indicated that the committee members have a varied degree of experience.  Members can be assured that all inquiries will be dealt with and she requested that all comments, etc. be in writing and be presented in a sealed envelope to the committee members. Alternatively, members may email the committee at: lcsauditcommittee@gmail.com

Treasurer’s Report 
Roger Borg presented the Treasurer’s report.  (Copy Attached)

A summary of the report follows:

• The Management Chart was reviewed.
• The yellow areas of the chart are the elements of the organization that don’t generate any income but are centers that cost a lot of money.
• A new item that will recognize the stewardship responsibility to Neill James was introduced.  He will recommend to the Board that this area be elevated to its proper place of importance.
• Spanish classes and the medical program generate funds that go to the Student Aid Program.
• The directory is an annual publication that the Board needs to keep an eye on.
• A snapshot picture of the managers for all areas along with their e-mails is provided so we can know who is responsible for what area.

Following the presentation the Treasurer made the following recommendations:

• Add a management account for maintaining/enhancing the Neill James physical plant.
• Use the Management Financial Chart as a management tool.
• Comparison to budgeted amounts will be added in January 2009.
• Will continue to allocate 75% of income from Spanish classes to teachers and 25% to Student Aid.
• Use Oct-Dec QuickBooks information to close out 2008 transition to 2009.
• “Zero” the Spanish class account.
• Make Pay Pal transfers at the end of each month.
• Authorize the Treasurer to have full access to the financial accounts including check writing.  This will allow for a simplified process to move money between accounts, will provide back-up check writing for emergencies and will provide ease of operation for the volunteer Treasurer.

Moved by Emile Badawy; seconded by Diane Miller that the Financial Report be accepted as presented.  Motion carried.

President’s Report

Nancy Creevan provided the President’s Report for 2008: (Link to Report)
A summary of the report follows:

• It has been a very challenging year.
• LCS has had a financial downturn, which the Board addressed by downsizing payroll and increasing membership dues, resulting in the recall petitions.
• The current Board started the year with a Sr. Financial Director, a position that had been vacant for more than 18 months.  As soon as taking office, Rick Feldmann began evaluating the financial situation and recommended changes that the Board adopted in the first half of 2008.  These included:
• Tightening cash controls.  A new process for collecting and securing daily receipts  was implemented.
• Discretionary spending was tightened.
• Non-budgeted spending was frozen.
• Efforts were continued to rein in Buildings and Grounds expenditures, an effort that had begun in 2007.
• Decision was made that ads for the 2009 directory would have to be fully paid and all artwork submitted before ads could be submitted for printing.
• On the advice of our Mexican attorney we stopped collection IVA from directory advertisers and made arrangements with Mexican authorities to resolve the issue from past years.
  
• A multi-layered approval process for special requests from Student Aid recipients has been developed.
  
• After a Student Aid donor became ill the number of students aided was frozen.
• Extra fund-raising activities were introduced including the quilt raffle and the sale of newly designed t-shirts.
• Non-LCS groups are now being charged for use of the facilities.
• This year’s July Fiesta netted a record amount of revenue.
• Key positions were established and filled.  The new Office Administrator position was defined, advertised and filled.  Terry Vidal started work on December 1, 2008.
• The first Public Relations Committee that LCS has had for a long time was established and a PR Director was recruited.  They conducted a member survey, which has resulted in Wi-Fi being provided for our members on a trial basis.
• An all-volunteer library was achieved with people being cross-trained under the leadership of a new Library Committee.
• The first LCS Audit Committee was recruited.
• The member value-added services were expanded.  This includes the online bulletin board, the ability to join or renew membership online using Paypal.
• In hindsight the Board could have done things differently:
• Specifically reported to members that budgeted revenues, such as membership dues and sales were falling short of projections and that they were falling lower than typical for the low season.  Financial reports and Board minutes are now being published on the website each month.  These will also be posted outside the Services Office.
• We should have taken drastic actions such as downsizing the payroll earlier in the year.  The Board and Treasurer had kept watch from month to month hoping that things would improve.  This didn’t happen and we were forced to downsize the payroll.  This was something none of the Board wished to do and they agonized over it.  By September it was clear that the necessary decisions could not be delayed.  The fact remains that the LCS would be in a better financial position today if the Board had made and implemented these decisions earlier.
• The Board has learned we should face facts sooner and more bravely.
• The entire Board is committed to effectively communicating where LCS stands, to you, the members.
• Divided as the membership has been for the past few months, we will all suffer and LCS as an organization will suffer most of all if this divisiveness continues.
• Together we can all move forward to meet the challenges of the next year, whatever they may be.

Moved by Norm Pifer; seconded by Mary Ann Waite that the President’s Report be accepted as presented.

Moved by  Rich Bailey to adjourn the meeting at l:55pm.

Respectfully submitted,

Lynn Bishop