SBC Newsletter June 10, 2011 57 members present / Next meeting July 8th @ 8 pm

Commodore-

Thank you to Ron Marshall for representing the SBC with a float in the Memorial Day parade.

Commodore Bochenek led with the pledge of allegiance and officer roll call. All officers and directors were present. Director Eric Alley and Director Terry Cannizzaro were reinstated after a vote was taken. The Boy Scouts from troop 55 were thankful and wanted to give SBC a check for $100 after using the SBC facilities. Jim Johnson made a motion to give the money back to the boy scouts and the motion passed. Chip announced that a CPR course will be held on 6 PM on July 13th ($16 fee for certification.) sign up at the bar or contact Marge Kondrat.

First Vice Commodore-

Thank you to Bonnie Vincent, Bruce Barringer, Delores Niedzjko and Lee Ann Valachovic for cooking breakfast. Before hiring the new breakfast cook!

Jim reported income of 12,955.44. Jim reported that food will be available for purchase starting June 17th, after hour menu (7p.m. – 1 a.m.) Breakfast hours are 7-11a.m. Menu posted in bar.

Second Vice Commodore- Bobbie announced the following activities: Music by Sal on June 18th July 2nd at 12 noon, Kid’s Field Day

with games, prizes and food. Music played (8p.m.-12) by Disc Jockey Tim Byrne. Please sign up on poster. August 6th Poker Run, August 20th Tropical Drink Night, and September 4th Fall Bake. Please see Jim Johnson if you want to book a party @ the club during the month of June, Bobbie will not be available. Flag donations have been accepted from Anne Ryan and Ted Bochenek. Rear Commodore- Please check dock assignment list. The courtesy dock will have water and

power available opposite the gas dock alleviating traffic congestion. Trailers need to be tagged and parked in designated areas close together to save space. PWC stickers are available for $50. All PWC requiring a dock should speak to Brian for availability. Boats need to be secured without interfering with power or electrical lines. Volunteers are needed to clean up debris from the storm, cut up wood and dispose of it. $1,500 Emergency dock work was approved by the board. 105 gallons($395.95)May 15-21 was reported missing. A monthly read out of the gas meter is being made to help alleviate any further gas discrepancies. Treasurer- Sandy read her report stating a balance of $75,521.93, mortgage of $14,275.45, and Back Bay mortgage of $8,989.39. A letter is posted @ the club from Jim Cornell. Finances are in order at this time. Purser- Jim Jankowski reported all dues and fees have been collected. GroundsPlease return deck furniture after use to be respectful of lawn mowers. Wednesday night grounds work needs more volunteers. When stop sign is posted in driveway please stop and proceed with caution.

- Eric Jones posted a list of weekly jobs. Please legibly mark your name and hours worked.

Committee Reports

– Commodore Bochenek called on the following committees to give their reports. By- Law –no report. Pavilion- Chip Arata reported a plot plan is being submitted. Front Bay-no report. Land Development- Ted needs someone to chair this committee. Bathroom- no reported funding is pending from the budgeting committee. Nominating Committee –Chairman Brian Stangle, members- Dr. Cope, Ron Marshall, Chip Arata and Gary Clair. Budget Committee- chairman Larry Cornell, members- Jeff Cornell, Jeff Graves, Mike Whelan and Vince Ricciardelli.

Unfinished Business- Breakfast cook and assistant hired. Hours are 7-12 a.m. New Business-

Membership roster available to members was requested by Jim Lais. Letter of Thanks to American Legion for color guard attendance and participation during Opening Day Ceremonies & $100 donation to Hometown Heroes Program was suggested by Ron Marshall. Two 40 hour weeks @ $10.50 an hour paid leave for Evie approved. New POS cash register system purchase to improve record keeping of house sales approved for $3200 from the house improvement reserve account.

Board of Directors Meeting

1. Received officer’s reports.

- 6/7/11

2. Approved hiring of bartenders and breakfast cook. 3. Discussed gas purchase accountability and record keeping. 4. Approved request for dock emergency funding in accordance w/ Article 110 Section 2. 5. Discussed dock water system progress and plans. 6. Discussed proposal for a point of sale cash register system. 7. Reviewed and acted on member letters. 8. Discussed new bylaw revision entries w/ committee chairman.

First Mates Report – Celebrate Kid’s Day July 2, 2011.Sign-up to help on Kid’s Day. 1st Mates will donate a Bouncy House.

Special thanks to all who helped with Opening Day Ceremonies! Thank you to everyone who donated goods and their time. Nominations committee Lisa Bochenek and Dina Hennessey canvas for next year’s officers. The Deck furniture blew away in a storm. Committee will look for options to help with the purchasing of replacements furniture. 2 Amish Adirondack chairs and table will be purchased for a raffle.

Evie will be taking time to recuperate. Let’s wish her a speedy recovery!!!!! Evie’s Dinner Specials –

James Cornell12 First Ave.

Broadalbin, N.Y. 12025

To: The membership of The Sacandaga Boating Club

From: Jim Cornell, Internal Auditor

I would like to take a moment of your time this evening to address an issueregarding the financial reports of the year-ended September 30, 2010.

Commodore Ted Bochenek contacted me a couple of months ago and asked that Ihelp with a more intense review of the books and records of the House due to a reporteddecrease in the income from the previous yearwhich did not seem justified by some ofthe members and officers. I agreed to try to work together ~ith the appropriate officersand the Treasurer to verify if the reported numbers were accurate.

Over the time I was trying to assemble the necessary documents and individualsto re-create the monthly transactions of the House (which with some officers ofSBC islike watching paint dry) some of the members began circulating accusations of wrong-doings and cash shortages which were based solely on their interpretation of the financialstatements. This pea that was planted in the minds of the membership has seemed to growto Jack-and-the-beanstalk proportions. More than a couple of times I have had membersstop me on the street and last weekend at Northampton campsite to ask "have you foundout where all the money went up at the boat club".

First, let me state with the exception ofthe $587.00 of cash register shortages thatI reported on in my year-end review, there is absolutely no evidence of missing receipts.My review did uncover a couple of significant errors in the recording and posting of thehouse income and the gasoline sales, as well as the cash paid-outs through the registerwhich I will detail later.

Secondly, I would like the membership to understand my job as auditor becauseof a personal feeling of persecution and the idea that "why didn't this get discovered inthe original audit". My job as auditor is to ascertain the validity and reliability of theinformation reviewed and to provide an assessment of the internal controls. The goal is toexpress an opinion on the financial condition of The Sacandaga Boating Club based onthe work performed on a test basis. Due to practical restraints, only a portion of all thepostings and entries of an entire year of activity can be reviewed to provide onlyreasonable assurance that the statements are free from material error. But let me assureyou that each year 100% of the receipts of SBC are traced back to the deposits made andconfirmed by the bank statements to verify all funds are accounted for.

It is the job of the officers of SBC to record the transactions in an accurate andtimely manner and communicate that information promptly to the Treasurer. And it is thejob of the Board of Directors to verify at each monthly meeting that those requirementsare being fulfilled by those officers though the reports and documents they must submitmonthly at those meetings. Instead, too much of the information is either not submitted,submitted late or routinely "rubber stamped" by the Board without the vigorous reviewnecessary. So to put this all in laymen's terms what you are getting as the old adage goesis " shit in-shit-out".

You can't have "loosey goosey" "seat of the pants" recordkeeping during the yearand then expect a General Motors financial statement at year-end. Until SBC decides tostandardize the reporting of the income generating units, hold officers accountable for theaccuracy and timeliness of their reporting duties and require a more stringent review bythe Board of Directors at each monthly meeting of each of the officer's books and reportsyou will never have completely accurate financial statements.

;.. •. .I will get down off my soap box now because I am probably wasting your time as nearlyall of my recommendations over the 12 plus years as auditor have fallen on deaf ears as

.tpey most assuredly are again this evening. I have strived long and hard each year to givethe best numbers possible even after leaving the membership 4 years ago.

Attached is an expl nation of the items we uncovered that were either notrecorded or -improperly recorded and their impact on the financial statements ofSeptember 30, 2010. The adjustments did not change the reported profit. The adjustmentsdid increase House Income, decrease Gasoline sales and increase certain expenses. Pleasedirect questions to the Treasurer for clarification.

P.S. I would like to assure the membership also that all of my time and effort spent onthe re-auditing of the house books and records were at no expense to SBC.