July 28, 2014
The regular meeting of the Board of Directors’ of the Cincinnati Musicians’ Association was called to order on July 28, 2014 at 9:29AM.
Mike Andres was absent.
The minutes of the July 14, 2014 meeting were tabled until the next meeting.
Guests: John Layne from Kelley, Galloway & Co. and Rhonda Gillum, Officer Manager
GOOD STANDING FROM OTHER LOCALS
I. President’s Report
- President Frankenfeld reported that he had met with members of the Musica Sacra Board. They will provide their personnel needs for the next season so that Paul can apply for MPTF funds. Manami White will be doing their contracting in the future.
- It was reported that the Cincinnati Chamber Orchestra did a free, volunteer concert in Washington Park. President Frankenfeld has not heard back from either Mike Cioffi or Jennifer Funk at this date.
- President Frankenfeld will be going through the membership roster with Lynne to identify individuals who may be in arrears. There may be some members erased following the examination.
II. Bravo Music
- Don Hurd reported that Bravo has been able to renew its registration with the Secretary of State. Now that it is officially registered it is up to the Board to decide what direction it will take.
- President Frankenfeld yielded the floor to John Layne.
- Layne reviewed the results of the audit with the Board. The report is that the financial health of the organization is good but provided the following suggestions so that the Board can be more effective in financial oversight: a) The Board may wish to look at the Insurance Reserve monies for possible ways to increase the returns. He suggested the Board seek information regarding reinvestment opportunities; b) The inter-fund balances need to be corrected so that any outstanding payments can be completed; c) The Board should receive a monthly statement that should be broken down to report what jobs has been paid, what jobs need to be paid, and what jobs have been worked but payment has not been made. Along with this report the Board should be receiving a report every 6 months from Promo showing the number of jobs being done over that time frame using the same format as the monthly statement. There were many questions from the Board and Office Manager, Rhonda Gillum. John Layne will work with Rhonda to create the type of documentation needed. d) The final suggestion was for the Board to consider terminating Accent Music. The ability to book jobs for members will still be provided but the booking agency would be dissolved. Any decision would need to be made prior to the end of the fiscal year for Accent which would be March 31, 2015.
- The suggestions presented by John Layne provide ways for the Board to continue with its responsibility of monitoring and oversight of finances in order to keep up with ways fraud can occur. As technology improves so must the means of oversight.
- Based on the findings of the audit the recommendation from the office of Kelley, Galloway & Company is as follows: We recommend that management and the board of Trustees evaluate the audit. Management and the Board of Trustees should consider the current capabilities of employees and what additional expenses are needed to produce proper financial statements, including footnote disclosures.
- Based on the review of the audit findings the official response of the Board is as follows: The Board of Trustees has discussed the options concerning the Union obtaining the capabilities of preparing financial statements that would not require significant changes by the auditor. The Board has decided that it would not be cost beneficial to change its current practice. The Board believes it is in the best interest of the Union to continue to retain the auditing firm to prepare its financial statements in conjunction with the year-end audit. However, management will review and approve adjusting entries, if any. Additionally, management will review and approve the Form 990 and Form LM-2 before they are filed.
THE FOLLOWING VOUCHERS WERE ORDERED PAID:
See attached B24700-24711
Next meeting scheduled for Monday, August 4 at noon.
Meeting adjourned at 11:40AM.