<html><head><meta http-equiv="Content-Type" content="text/html charset=us-ascii"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div></div><div><br></div><div>I focused in on four parameters: (1) attendance level, (2) ACBL sanction fees, (3) ACBL director session fees, and (4) venue rental fees, gathering data on each and quantifying a range of factors representing their potential effect on cash flows. From the data, it appears that items (1), (3) and (4) have a large first order effect on cash flow and item (2) much less so.</div><div><br></div><div>In the box at the bottom of the paper, I suggest a range of "nominal," "pessimistic" and "worst case" factors for items (1), (3) and (4). As stewards of the unit's funds (and its destiny) we should manage financials in a conservative fashion with an eye toward handling trends and circumstances that could substantially degrade our financial position over time. Thus, a cash flow analysis should focus on "pessimistic" and/or "worst case" scenarios for the key parameters.</div><div><br></div><div>An effort to quantify a long term target for a minimum threshold account balance should involve elements in addition to a budget and a <i>pro forma </i>cash flow analysis. It should account for the possibility of a catastrophic event in which the trailer and the equipment therein are lost and would have to be replaced. John has asked David Taylor for an estimate of such replacement cost, which would be considered a "reserve" to be protected in our account balances. Finally, the board should consider whether to maintain some further reserve for unknown unknowns -- for example a circumstance such as storm that causes loss of power, or some other eventuality, wherein we incur venue rental fees but the tournament is disrupted and we don't realize some or all of expected revenue.</div><div><br></div><div>If the board feels it appropriate to continue with development of a<i> pro forma</i> cash flow analysis, I would be glad to continue to work on this and would appreciate the board's comments and suggestions arising from discussion this evening or otherwise. </div><div><br></div><div>Separately, a portion of this evening's meeting will be devoted to committee work. While I won't be there to participate in discussion/planning of the Tournament Sites Committee, I would suggest that those who are focus on a review of our 2018 and 2019 tournament lineups (see links below to Planning Calendars) and brainstorm/discuss efforts going forward to identify new candidate sites for open and NLM sectionals.</div><div><br></div><div><a href="https://docs.google.com/document/d/18iVI5XzxsuQFgTPcnRELXMBJBZs2JDMrTWPFYZ2peNw/edit">https://docs.google.com/document/d/18iVI5XzxsuQFgTPcnRELXMBJBZs2JDMrTWPFYZ2peNw/edit</a></div><div><a href="https://docs.google.com/document/d/1NYcdlwx2208f2eEXPqM0ZNTzdRzmhov6w4cdUG4SkN8/edit#">https://docs.google.com/document/d/1NYcdlwx2208f2eEXPqM0ZNTzdRzmhov6w4cdUG4SkN8/edit#</a></div><div><div><br></div><div><div>Thanks and sorry I can't make it this evening,</div></div></div><div>Tim</div></body></html>