BUILDING OCCUPANCY

The Committee discussed the creation of a new department to contain costs related to publications and production that is non-Magazine related. The ma-

jority of these costs are currently in Dept. 08 - Magazine. In addition, the

BKO

costs currently shown in Dept.

13

-·Program Services would become part of the new department. This also relates to the amendment restricting subscription funds for Magazine.

Recommendation #3:

The Committee recommends that Dept.

21 -

Publications be created and that the 1986/87' budget be amended to incorporate the transfer of account num- bers and affected budgeted amounts as shown in Exhibit C. With the recom- mendation for inter-departmental charges and a Department

21

being creat~d ,.

the net surplus of the general fund would be reduced by $186,000 and the net surplus of the new Magazine fund would be increased from -0- to

$186,000 as shown in Exhibit D.

I move that Recommendation 3 be adopted.

Finance:

(Adopted) Reduction of general fund - Increase to magazine. fund Procedure: In compliance

CAPITAL EXPENDITURE REQUEST FOR TRANSLATION EQUIPMENT

The Committee discussed the request to purchase additional translation equipment to provide for 3 additional languages. ·With the addition of this equipment we will be able to provide for simultaneous translation for six languages.

Recommendation #5:

The C.ommittee recommends approval for purchase of additional simultaneous translation equipment at a cost of $2,000 to u~grade the current

equipment from

3

to

6

languages.

I move that Recommendation 5 be adopted.

(Adopted)

$2,000 reduction in surplus - Capital Improvement Fund In compliance

Finance:

Procedure:

PROGRESS OF NEW SEMI-ANNUAL BILLING PROCESS

Staff presented a report on (Exhibit W) and the Committee discussed the new semi-annual bili'ing process which was instituted in the Fall of 1986. A change will be made to reinstitute sending rosters to clubs with the next billing.

LIABI~ITY INSURANCE SURVEY

The staff reported on the results of a survey sent to clubs to gather infor- mation for liability insurance purposes. The survey concerned various club accounts and activities. ~pproximately 1,600 clubs responded. The survey is expected to assist in obtaining quotes from insurance companies for liability insurance, and also provide an indication of club interest in Directors and Officers liability coverage.

DATA PROCESSING REPORT

Staff prepared and presented to all Board members a comprehensive 38 page report on data processing. The purpose of the report was to provide infqrmation impor- tant in answering questions regarding the computer operations. The Committee commended senior staff and the Management Information Services Department for this most informative and in-depth report. Staff suggested the establishment of a special fund in which a specified amount would be placed annually during the budgeting process for the eventual enhancement or replacement of current hard- ware and/or software. The Committee considers this suggestion as having merit and will give it future consideration commencing with the 1987/88 budgeting pro- cess.

TOLL FREE (800) TELEPHONE SERVICE

The committee reviewed and discussed the proposal by staff to install the above service. However, some modifications were suggested. The report as modified was presented to the Administration Committee for their consideration.

ACCOUNTS PAYABLE AND GENERAL LEDGER PROGRESS

Staff reported that the accounts payable conversion has been completed. The software is currently being operated in parallel with the current system and will begin full use in February.

The target date for the general ledger package conversion completion is May 31, 1987.

LIFE MEMBER ANALYSIS

.Discussion was given to the life member analysis report presented by staff. The Committee decided that an actuarial valuation was needed.

Recommendation #6

Suffi.cient information was provided to the Committee to warrant concern of the future impact of life member income and that consideration be made to acquire an actuarial report. The Committee recommends that up to $700.00 be expended from account #02-106-01 to determine the actuarial ba-se for life members and determine the future so_lvency of the life member program.

I

move that Recommendation 6 be adopted.

Finance:

(Adopted)

$700 reduction in budgeted surplus - operating fund Procedure: In comp li a nee

REVIEW OF ANNUAL AUDIT REPORT

Ken Masick of Wolf

&

Company presented the annual audit report for Kiwanis International and reviewed the contents with the Committee.

The Committee noted the increase of approximately $1,000,000 in expenses from 1984/85 to 1985/86. A report summarizing the major changes from last year is attached. (Exhibit G)

The ·Committee also discussed the increase costs of European Operations and the impact of the fluctuation of the U.S. dollar against the Swiss Franc.

Recommendation #7:

The Committee recommends that the annual audit report as submitted to all Board members by Wolf & Company be approvede

I

move that Reconnnendation

7

be approved.

(Adopted) Finance: None

Policy: In compliance

MANAGEMENT LETTER FROM WOLF & COMPANY

Ken Masick, Wolf & Company, discussed the Management Lette~ p~P-oared as part of the annual audit. It was noted that significant progress has been made ove~

prior years and that the comments made on the management letter are considered minor problems. Copies of the Management Letter have been distributed to the Board.

Recommendation #8:

The Committee recommends that the Management Letter prepared as part of the annual audit by Wolf ^& Company be approved.

I move that Recommendation 8 be approved.

(Adopted) Finance: None

Procedure: In compliance PER DIEM

The Committee was requested to review current Procedure 892.1 (d) to clarify the wording.

Recommendation #9:

The Committee recommends that Procedure 892.1 - Allowance, sub section (d), be revised and referred to the Administration Committee for insertiort into the Procedures to read as follows:

Members of the Board of Trust~es are entitled to a per diem when away from home on official Board business. The effective dates for per diem to be paid are those dates required for official Board business including travel days. For partial travel days up to

1/2 day, per diem shall be paid at 1/2 the.established ratese I move that Recommendation 9 be adopted.

(Adopted) Finance: No impact

Procedure: Amend Procedure 892el - Allowance

Respectfully submitted, W .J. "WIL" BLECHMAN, M. D.

WILLIAM L. LIEBER GENER. OVERHOLT

NORIS A. LUSCHE, CHAIRMAN