Board of Directors: 2010-11 Treasurer's Report

Board's Eye View

Board of Directors: 2010-11 Treasurer's Report

Posted on Sun, Oct 23, 2011 @ 01:21 PM

Sue Kastensen

Treasurer VFC Board of Directors

With record sales and our third consecutive profitable year, June 30th brought us to the end of another great financial year for the Viroqua Food Co-op (VFC). Sales increased by 12.1%, or $541K, to bring us to the $5M mark. Despite continued recessionary trends, the VFC has experienced an average annual increase in sales of 12% for the past four fiscal years!

Net Income for FY 2010-2011 was $78K; only $3K less than the prior year. Gross Profit was up $232K over the prior year at $1,974K. Overall expenses for this fiscal year exceeded budget by $104K or 5.8%. As a result of the VFC’s continued great performance, our negative Retained Earnings balance moved in a positive direction for the third consecutive year, from ($296K) to ($256K).

Our ownership grew this year by 7.6%; we now have 2,789 active owners! Sales to owners exceeded $3.6M for the year, representing 74.5% of total income. While this percentage is typical of our store, the greater co-op community strives to reach 50% owner sales. Community support also continues through strong interest in our Class C Series 1 stock. Stock purchases exceeded $90K during FY 2010-2011.

The VFC Board of Directors would like to thank our owners and our community for supporting the continued success of our Cooperative as we move forward together.

Balance Sheet FY 2010 - 2011

Current Assets
Total Checking/Savings	$301,649
Total Accounts Receivable	$3,798
Total Other Current Assets	$273,179
Total Current Assets	$578,626
Total Fixed Assets	$1,287,750
Total Other Assets	$269,858
TOTAL ASSETS	$2,136,234
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable	$216,663
Total Other Current Liabilities	$66,821
Total Current Liabilities	$283,484
Total Long Term Liabilities	$1,132,116
Total Liabilities	$1,415,600
Equity
VFC Equity and Stock	$815,738
Membership Stocks	$160,727
Retained Earnings	-$255,831
Total Equity	$720,634
TOTAL LIABILITIES & EQUITY	$2,136,234

Income Statement FY 2010 - 2011

Income
Grocery Sales	$2,132,979
Bulk Sales	$539,421
Produce Sales	$791,221
Wellness Sales	$483,133
Deli Sales	$1,072,509
TOTAL INCOME	$5,019,263
Cost of Goods	$3,045,323
Gross Profit	$1,973,940
Expense
Depreciation	$104,692
Personnel	$1,261,087
Occupancy	$167,443
Operating	$117,665
Marketing	$55,094
Administration	$74,608
Member Discounts	$47,625
Governance	$32,241
TOTAL EXPENSE	$1,860,455
Net Ordinary Income	$113,485
Total Other Income	$50,249
Interest Expense	$77,959
Income Taxes	$8,000
Net Other Income	-$35,709
NET INCOME	$77.776

viroqua food coop sales vs profitability

viroqua food coop expenses

viroqua food coop income

Success in the Numbers FY 2010 - 2011

We gained 197 new owners, bringing our total ownership to 2,789
We had total annual sales of $5 million showing 12.1% growth over 2009-10
74.5% of sales came from our growing ownership
Donations made to our community $4,892
Our purchases from local vendors totaled $496,166
VFC staff received over $1.2 million in wages and benefits
Overall Employee Survey score 4.24% (out of 5) shows high level of workplace satisfaction
Staff turnover was reduced by 47% from FY 2009-10
Owner discounts totaled $47,625
Net income amounted to $77,776 to be applied to debt reduction, necessary repairs and other expenses

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Board of Directors

The Board of Directors is the legal steward of the Co-op. They are members of VFC who are elected by the other members to act on their behalf to fulfill the obligations that come with owning a business. You will find the names of current directors in every issue of the Pea Soup.

The Board of Directors provides leadership, vision and guidance for our cooperative. It ensures that the needs of the members are being met. The Board is primarily responsible for protecting Co-op assets for the member-owners (fiduciary responsibility). Directors are expected to act in good faith and in the best interests of the cooperative as a whole. The Board is also obliged to respond to changes in the economic environment, the membership base, and the financial status of the cooperative. This means that policies that are in effect when you join the Co-op may be changed by actions of the board. Any such changes would be explained in the newsletter and at the annual meeting.

There are three primary responsibilities of the board:

To ensure sound management of the Co-op resources
To act as trustees on behalf of the members
To set long-range goals and to plan for the future

The Board uses the Policy Governance model of organizing its efforts. This governance structure requires the Board to create policies that define the roles and responsibilities of the General Manager, and the purpose, mission and strategies of the organization. The task then becomes how to adequately monitor the performance of the Board and GM relative to these policies. This system requires attention and practice, and the VFC Board is working to improve, which will free the board to better use its time toward big picture issues – what the membership wants and how to make that happen responsibly.

Individual directors do not direct the operation of the store, supervise staff members, or speak for the cooperative as a whole, except when the board has authorized a director as spokesperson. They exercise authority only as a group.

Board Meetings

VFC Board Policy Manual

VFC Board Calendar

Consider serving on the Board of Directors

Board's Eye View