Lawrence Sister Cities Advisory Board
May 9, 2007 minutes
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MEMBERS PRESENT: |
Stuart Boley, Lynn Ground, Kathleen Hodge, Linda Hyler, Jon Josserand, William Keel, Graham Kreicker, Bob Moody, Gina Ross, Andrew Tsubaki
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MEMBERS ABSENT: |
Nancy Bjorge, Michael Kennedy, Karen Swisher, Bob Schumm |
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STAFF LIAISON PRESENT: |
Michael Tubbs |
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PUBLIC PRESENT: |
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Meeting called to order at 5:30 by Ross.
Keel moved. Moody seconded that the minutes from April be approved as corrected. Passed.
The financial reports were reviewed. We operate on a January to December accounting basis. A review of the finances indicated that both Eutin and Hiratsuka have approximately a balance of $8,000 each after airline tickets have been paid. Kreicker moved approval of the financial reports. Boley seconded. Motion passed.
Ross reported that the city is keeping an electronic file of our appeal with the IRS. We also have paper copies. Ross has submitted all records required by the IRS. The IRS has responded that they have abated our penalty on taxes for 2001 and 2002; we owe nothing. We have cleared our record with the IRS.
Ross has made the request for 2008 budget allocation to the city.
Boley reported from the Restricted Funds Subcommittee. Text of his report follows:
Comments 5/9/07
Stuart Boley
To start I’d like to apologize if this is too basic for you. In order to come to a common understanding of the topic, however, it may be a good idea to outline some of the concepts for everyone. Our balance sheet provides a picture of our financial position at a point in time. The underlying formula is that ASSETS = LIABILITIES + EQUITY. The balance is between the two sides of this equation. Our assets consist almost exclusively of money in bank accounts. Liabilities are debts that we owe. To do a bit of algebra we can amend the formula to ASSETS-LIABILITIES = EQUITY. This illustrates that equity is a residual concept determined as the net of assets less liabilities. Equity can be considered claims against the money in the bank accounts by the owners of the corporation—the Sister Cities Advisory Board, the City of Lawrence.
If you look at the balance sheet for April 30, 2007 you can see that Total Assets equals Total Liabilities and Equity--$63,471.68. Since we have no liabilities, our Total Equity is $63,471.68. This figure is comprised of two separate items, Retained Earnings and Net Income. The relationship between these two items is that Net Income is the result of current operations—it is generated by the income statement. Take a quick look at the year to date income statement and find that number--$17,499.99. The other figure is the result of all prior years’ operations and it is adjusted once a year when the books are closed. The Net Income figure is brought into Retained Earnings and the new year begins with a net income of $0.
As you look at the balance sheet you can see that we have not put any detail in for Retained Earnings. The method we have used to acknowledge claims is to maintain separate bank accounts; for example, we have a separate account for the scholarship funds. We also have separate accounts for the Eutin exchange and for the Friends of Hiratsuka. There are a couple of problems with this method. First, when we have so many accounts we can’t maximize the earning power of our deposits. Second, we are not keeping track of all of the claims. For example, Lisa’s research showed that we have budgeted $1,000 per year for five years for a third sister city, but this information is not recorded in our accounting data and since we don’t have a separate bank account for the third sister city it is easy to lose track of the budgeted allocations.
If we can figure out a way to track these things through retained earnings then we won’t have to maintain separate bank accounts for each type of fund. So we have prepared a draft allocation of retained earnings as of 1/1/2007 for your consideration.
The next step after we agree upon allocations is to work with Jan Stewart to determine how the various retained earnings accounts will be adjusted when the books are closed at the end of the year.
The subcommittee proposed combining our total retained earnings so we can maximize our income. The Board will review the figures and categories and allocations of monies. A report will be made from the committee in July.
Ross reported on the letter she wrote to the new President of Haskell. She has had no response from the new President at this time. Keel will do some checking with the Office of Study Abroad for a possible candidate if a position becomes available. Kreicker moved that we table the topic of the board replacement until the July meeting. Boley seconded. Motion passed.
Ross moved that we cancel the June meeting due to lack of a quorum as a number of the board members will be in Eutin for the 750th celebration.
Ross presented a new amendment to our 2003 Bylaws be added to ARTICLE V. Meetings to add to Section 6. The proposed amendment reads as follows:
Any member who has three (3) consecutive unexcused absences from regularly scheduled board meetings shall be determined to be disinterested in membership on said board. The Chair shall contact the board member to see if special considerations exist for excessive absenteeism. Lacking such considerations, the Board may request the Mayor appoint a new board member.
Ross moved that we approve and submit the suggested amendment to the next city commission. Moody seconded. Motion passed.
Hyler moved that our art books be given to Hiratsuka and Eutin students and sponsors who are visiting Lawrence, and that they be given to officials in these cities as visits are made. Moody seconded. Motion passed.
Keel announced that the Friends of Eutin had organized May 2. The minutes from that meeting are as follow:
Friends of Eutin
Minutes of the Regular Semi-Annual Meeting
Wednesday, May 2, 2007, at the Max Kade Center
Present: Ken Albrecht, Frank Baron, Beverly Bartscher, David Collins, Friedemann Eisert, Jack Gaumnitz, Kathleen Hodge Jon Jossrand, Bill Keel, Graham Kreicker, Lucy MacAllister, Patrick Musick, Gina Ross, Scott Seeger, Bob Schumm, Sandy Schumm, Del Schankel, Peter Zacharias, Regine Kroh, Ann Heidebrecht
Friedemann Eisert reported on the successful 2006 high school exchanges with Eutin and announced that 10 Lawrence students will be going to Eutin on 30 May. Phyllis Farrar will be the teacher for the first half and Ursula Kuhn-Laird will be the teacher for the second half. The students from Eutin will arrive here about 29 September and leave at the beginning of November for a brief visit to Chicago before returning to Eutin. Their teachers will be Birgit Steingraber for the first half of the exchange and Thomas Dretzler for the second.
Frank Baron reported on the very successful visit of the Eutin Guitar Orchestra, March 30-April 2. They played concerts at the Nelson-Atkins Museum in Kansas City, Free State High School, Southwest Junior High School, and the K.U. student union. Their main event was a Sunday evening concert before nearly 300 in Liberty Hall. The group reported that their home-stays in Lawrence were high points of their eight-city tour.
Kreicker and Baron reported on the ways we will help Eutin observe the 750th anniversary of their founding:
A group of 20 delegates will arrive there on Sunday, 3 June and have home hospitality. There will be a reception in City Hall and on Wednesday, 6 June the delegation will present to the City a stainless steel sculpture entitled “Eternal Spring” created by Lawrence artist, Jan Gaumnitz.
Later that evening the delegation, assisted by our high school exchange students and K.U. Summer institute students will host a “Kansas Night” barbecue.
In September, Kari Paludan, soprano, and Melanie Hadley, pianist, will present an evening concerts in the castle, then provide classes and performances in both Eutin high schools.
Baron reported that Lawrence Magazine will feature the history of the Lawrence sister city program in their next issue. Copies will be obtained for use by the members.
Baron reviewed the successful internship program operated by the Sparkasse Holstein (county savings bank) in Eutin. This year’s intern from the K.U. CIBER program will be Levi Lutz who will work at the bank. The bank covers his lodging and pays a stipend. CIBER (Center for International Business Education and Research) will pay his airfare.
Chair, Keel, outlined the requirements for membership in Friends of Eutin and passed out membership applications for use by those that had not yet joined.
Keel asked for a report of the Nominating Committee. Nominations included Ken and Nancy Albrecht for Co-Chairs, Beverly Bartscher for Secretary and Phyllis Farrar for Treasurer. Keel called for nominations from the floor. There being none, Keel entertained a motion to elect the slate by acclamation. Kreicker so moved, seconded by Collins. Motion passed unanimously.
Keel referred to the requirement for the Friends of Eutin chair to designate one member to represent FOE on the Sister Cities Advisory Board if the chair could not do so. Ken Albrecht then designated Keel to be that representative.
Keel then suggested that it would be appropriate for the Friends of Eutin to have one additional elected officer to be named coordinator of the high school exchange program with Eutin. He reminded the group that Friedemann Eisert had done a superb job in that capacity for about eight years. Baron moved that we elect Eisert and this was seconded by Bartscher. Eisert requested that the motion be amended to include as co-coordinator Stuart Strecker from Free State High School. The amended motion passed unanimously.
There being no further business, Keel declared the meeting adjourned at 8:40 p.m.
Respectfully submitted,
Graham Kreicker
Secretary Pro-tem
Officers 2007-2008
Co-Chairs Ken and Nancy Albrecht
Secretary Bev Bartscher
Treasurer Phyllis Farrar
High School Exchange Coordinators
Friedemann Eisert & Stuart Strecker
Sister Cities Board Representative
Bill Keel
2007 High School Exchange Leaders
Phyllis Farrar & Ursula Kuhn-Laird
Eutin 750th Committee
Frank Baron, Graham Kreicker, Bob Schumm, Bill Keel
Moody moved to adjourn. Boley seconded. Motion passed.
Next meeting July 11, 2007.