RAINBOW BOARD MEETING MINUTES


JULY 15, 2008

ATTENDEES: Board members: Barbara Scobee, Ann Herlihy, Joy Adams, Leo Huddleston, Daniel Johnson; Non-board members: Bruce Fraiser, Luke Lundemo

A quorum was present.

The meeting was called to order at 6:10pm.

Board had a general discussion about reorganization.

Board made a resolution to draft a letter in regards to the following:
If there is a change in current management, the vendors will be paid in full and a letter sent to the vendor indicating that the personal guarantee from said employee no longer be enforced.

APPROVAL OF MINUTES: The minutes were approved for June.

FINANCIAL REPORT: Barbara Scobee presented the financial report. She reviewed the Profit and Loss, Statement of Cash Flows, and Balance Sheets. She said we are still working on getting terms for a line of credit, but right now we have no credit and no reserves. Cash flow went down from 50K to 46k. Rainbow paid down current liabilities and made no fixed asset purchases. Barbara indicated inventory is down 5k and if cash crunch continues inventory will continue to go down. Gross profit is down 20k because we are not raising prices to match the increased cost of goods. She reported our net profit is down and net income broke even. Barbara also note Rainbow has already put aside 11.5k towards taxes.

MANAGER’S REPORT: Barbara Scobee presented the manager’s report. In June, the number of shoppers was down from May as well as the purchase amount and the number of items sold. However, the average cost per item sold went up. She stated payroll is up from last year except in the café; the café payroll is down because staff was reduced. Barbara reported cash flow has improved because we have been able to secure 7-14 day terms with a few vendors and 14-30 days with other vendors. A bright ray of hope was produce sales were up 13%!

CEO REPORT: Luke Lundemo presented the CEO report. Highlights are as follows:
*The Rainbow-Tougaloo Community Garden is planning a big event in a couple weeks. There are also some great possibilities for grants to greatly expand the project. He will be meeting with Tougaloo staff to start the process moving forward.
*POS system still pending; awaiting a loan
*Fax for High Noon is up and running again
*Position of Outreach Coordinator is being redistributed among current employees because of current financial situation
*Copies of the energy audit were distributed to the board. Luke noted there are significant opportunities for savings, but it will involve some effort in implementing their suggestions.
*Glass recycling is increasing
*Dinner and a movie has been very successful
*Can access Rainbow’s events calendar at http://my.calendars.net/rainbow
*Luke and Charlotte will be presenting a symposium called Awakening the Dreamer. To find out more go to awakeningthedreamer.org.

Meeting adjourned at 7:50pm.

Minutes submitted by Joy Adams, Secretary of the Board